Vishal Mega Mart Ltd.
ISIN: INE01EA01019 • Market Cap: ₹48,441 Cr
The 5-Pillar Quality Audit for Vishal Mega Mart Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (14.6%), Return on Capital Employed (13.4%), and equity compounding (9.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (21.2%) and 3Y PAT CAGR (40.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 54.31 vs PEG of 2.90 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 40.1%, backed by 55.2% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 21.2%)
Revenue has expanded at 21.2% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 40.7%)
Net earnings have compounded at 40.7% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (55.2%)
Mutual funds, domestic DIIs, and foreign FIIs hold 55.2%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Consumer Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Services space.
Quantitative Strategy Eligibility
Checking VMM against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 73/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Services Sector Peer Comparison
Compare VMM directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Vishal Mega Mart Ltd. (VMM)Current | 73/100 | ₹48,441 Cr | 54.31 | 13.4% | 0.00 | — |
| Eternal Ltd. (ETERNAL) | 61/100 | ₹3.09 Lakh Cr | 713.64 | 2.9% | 0.00 | View |
| Avenue Supermarts Ltd. (DMART) | 66/100 | ₹2.60 Lakh Cr | 84.88 | 16.4% | 0.04 | View |
| Trent Ltd. (TRENT) | 74/100 | ₹1.57 Lakh Cr | 86.78 | 29.6% | 0.07 | View |
| Lenskart Solutions Ltd. (LENSKART) | 63/100 | ₹1.11 Lakh Cr | 169.67 | 8.4% | 0.03 | View |
| Indian Hotels Co. Ltd. (INDHOTEL) | 75/100 | ₹1.03 Lakh Cr | 48.02 | 16.0% | 0.00 | View |
Frequently Asked Questions: Vishal Mega Mart Ltd.
Q:What is the 5-Pillar Fundamental Score for Vishal Mega Mart Ltd. (VMM)?
Vishal Mega Mart Ltd. has a RupeeTools Fundamental Score of 73/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (57/100), Financial Health (87/100), Growth (92/100), Valuation (40/100), and Ownership Quality (82/100).
Q:Is VMM fundamentally strong for long-term investment?
Yes, VMM exhibits solid fundamental strength with a 73/100 score, driven by a return on equity of 9.9% and a debt-to-equity ratio of 0.00.
Q:Does VMM pass the Coffee Can Investing filter?
No. VMM does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does VMM compare against other Consumer Services peers?
Within India's Consumer Services sector, VMM trades at a P/E of 54.31 and generates an ROCE of 13.4%. Compare its 5-Pillar score of 73/100 against top sector peers like Eternal Ltd. (61/100), Avenue Supermarts Ltd. (66/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.