Vishal Mega Mart Shares Surge as Motilal Oswal Predicts 20% Upside

a Mart, one of India’s leading offline-first value retailers, saw its shares jump after Motilal Oswal initiated coverage with a 'buy' rating and a price target of Rs 165, suggesting a 20% upside. The brokerage highlighted the company’s strong growth potential in a market valued at ~Rs 70 lakh crore, projected to reach Rs 100 lakh crore by CY28. Operating 696 stores across 458 cities in 30 states and union territories, Vishal Mega Mart has a robust presence, with 72% of its stores in tier-2 cities and beyond. Catering to middle- and low-income segments, the retailer offers a diversified portfolio—44% apparel, 28% general merchandise, and 28% FMCG—positioning it to capture a larger share of consumer spending. Motilal Oswal noted that tier-2+ towns account for ~74% of India’s retail spends (~Rs 56 lakh crore), largely dominated by unorganized retail. However, growing brand awareness, organized retail expansion, and demand for quality products are driving a shift toward one-stop shopping destinations like Vishal Mega Mart, particularly in semi-urban and rural areas. With its strong footprint and diversified offerings, Vishal Mega Mart is well-poised to capitalize on India’s evolving retail landscape, making it an attractive investment opportunity.