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Stocktwits - Vishal Mega Mart shares fell 4% on Tuesday after a major block deal by its promoter entity, Samayat Services LLP.
Samayat Services LLP, backed by Partners Group and Kedaara Capital, offloaded around 20% equity via a ₹10,000–10,500 crore block deal, reducing promoter holding from 74.5% to around 55–60%.
According to SEBI-registered analyst A&Y Market Research, the deal, which occurred shortly after the pre-IPO lock-in period ended, points to a strategic exit by private equity investors.
While promoters continue to hold a controlling stake, it signals a notable shift in the company’s ownership structure.
They add that Vishal Mega Mart has moved higher on strong volumes after successfully retesting the ₹114 support level, signaling bullish momentum. The stock continued to trend higher, confirming buyer strength above ₹115.
A&Y Market Research has set mid-long-term targets for the stock at ₹133, ₹140, and ₹146, while suggesting placing a stop-loss at ₹113.
Vishal Mega Mart delivered a solid operational performance in FY25, driven by aggressive expansion and healthy consumer demand.
Financially, the company saw robust growth in Q4 FY25, with revenues rising 23% year-on-year and net profit surging 88%.
The company added 85 new stores during the year—including 28 in Q4 alone—bringing its total store count to 696 across 458 cities.
Same-store sales growth was equally impressive, coming in at around 13.4% for Q4 and 11.8% for the whole year.
Return metrics also remain healthy, with return on capital employed (ROCE) exceeding 11% and return on equity (ROE) around 8%, they said.
However, stretched valuations remain a concern, according to them. The stock trades at a high 92x price-to-earnings (P/E) ratio and 9x price-to-book (P/B) ratio, leaving limited room for error.
Additionally, past margin volatility, especially in FY24, could be a red flag for risk-averse investors.
They urged traders to monitor the company’s FII/DII activity, promoter reinvestment cues, and broader sentiment.
Data on Stocktwits shows retail sentiment has flipped to ‘extremely bearish’ on this counter amid ‘extremely high’ message volumes.
Vishal Mega Mart shares have risen 13% year-to-date (YTD).