Vishal Mega Mart: Will Earnings Break The Range? SEBI RA Rohit Mehta Flags Key Triggers Ahead

Stock is testing a cup-and-handle breakout as the Q1 results loom. The analyst flags valuation concerns and a sharp drop in promoter holding.

Vishal Mega Mart shares have been in a downtrend, losing nearly 5% in the past five sessions. Investors will be watching for its June quarter (Q1 FY26) earnings print later today. 

On its technical charts, the stock has seen a cup and handle breakout pattern. Will this fuel the next rally, or will earnings trigger a twist? SEBI-registered analyst Rohit Mehta weighs in. 

Key Levels To Watch 

Mehta identified support between ₹124–₹128, with resistance at ₹128 for Vishal Mega Mart.

Analyzing its shareholding pattern, promoters have pared their stake from 74.55% in March to 54.22% in June 2025. Meanwhile, Foreign Institutional Investors (FIIs) holding increased from 7.03% to 12.85%. On the other hand, Domestic Institutional Investors (DIIs) holding increased from 12.22% to 27.31%

In its previous quarter, Vishal Mega Mart saw its sales rise by 23.15% year-on-year (YoY), while profit rose by 42.23%.

Mehta highlighted that the company has delivered a strong profit growth of 72.9% CAGR over the past 5 years. 

However, the stock trades at 10.1 times its book value. The company has posted a low average return-on-equity of 8.53% over the past 3 years.

Mehta cautioned that despite consistent profits, the company has not declared any dividends. And he also flagged the 20.3% dip in promoter holding in the last quarter as an area of concern. 

Brokerage Radar

Motilal Oswal had initiated coverage on Vishal Mega Mart in July as a play on rising consumption and aspirations in Tier 2 and beyond India, with a target price of ₹165.

It is betting on one of India’s largest offline-first value retailers, driven by its substantial presence in tier 2+ cities, well-diversified exposure to key consumption baskets, a strong and affordable private brands portfolio, and one of the lowest cost structures in the industry.

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment dipped into ‘bearish’ from ‘neutral’ a day ago. 

Vishal Mega Mart shares have risen 31% so far this year.

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