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Vishal Mega Mart falls 6% as festive shift weighs on margins, SSSG in Q2

Vishal Mega Mart moved lower in a quarterly results development.

· Business Standard Mkts

Vishal Mega Mart Q2 results: The company has reported a consolidated net profit of ₹157.9 crore in Q2, up 3.7 per cent on a Y-o-Y basis. Its profit margin contracted to 4.6 per cent in the quarter.

Vishal Mega Mart reported ₹157.9 crore, with movement of 6%, 3.7% and 4.6% attached to those lines. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.

Against that, the stock is -4.7% on the day at ₹90.00, and has returned -20.5% over three months. It sits 39% below its 52-week high, which means a good deal of bad news was already in the price. The consumer & retail sector has moved -8.7% over the same period, so Vishal Mega Mart is running 11.8 points behind its peers.

For Vishal Mega Mart, the question is how much of this is already reflected in the price and how much re-rates the consumer & retail peer set alongside it.

  • Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
  • The company directly in focus is VMM.
  • Sector exposure: Consumer & Retail.
  • The immediate tone of coverage reads negative.
VMMConsumer & Retail