Vishal Mega Mart share price jumped 10% to hit its upper circuit of ₹113.95 in morning deals on the BSE on Monday, 24 August, defying weak market sentiment.
After hitting the upper circuit, the stock rose further to ₹ 115.40, up 11.40% from its previous close of ₹103.60. Around 10:40 AM, the stock traded 9.94% higher at ₹113.90 on the BSE. Equity benchmark Sensex was 0.12% up at 77,636 around that time.
Why is Vishal Mega Mart share price rising?
The stock gained traction after the company announced the reappointment of Gunender Kapur as managing director and chief executive officer (CEO).
In an exchange filing after market hours on Friday, 21 August, Vishal Mega Mart said, based on recommendations of the nomination and remuneration committee, its board had approved the re-appointment of Gunender Kapur for a period of five years commencing from 1 September 2026, up to and including 31 August 2031, redesignated as ‘Founder, Managing Director and Chief Executive Officer’ of the company.
As per the exchange filing, Kapur has over 42 years of experience in management and investment in the consumer and retail sectors. Previously, he was associated with Hindustan Lever Limited, Unilever Nigeria PLC, Reliance Industries Limited, and TPG Capital.
Meanwhile, the company’s board has approved the grant of 4.68 crore stock options to eligible employees at an exercise price of ₹102.60 per option under the Vishal Mega Mart Employees Stock Options Plan 2019.
Vishal Mega Mart share price trend
On the BSE, Vishal Mega Mart shares are down 25% over the last year, compared to a 4.5% decline in the equity benchmark Sensex.
The stock hit a 52-week low of ₹98.70 on 23 March this year after hitting a 52-week high of ₹157.75 on 26 August last year.
On a monthly scale, the stock is up nearly 7% on the BSE so far in August, looking set to snap its three-month losing streak.
Morgan Stanley is overweight on Vishal Mega Mart
Meanwhile, global financial firm Morgan Stanley has an “overweight” recommendation on Vishal Mega Mart with a target price of ₹146, according to media reports.
Morgan Stanley believes the re-appointment of the MD and CEO for 5 years is a key positive, as the uncertainty around management succession has been a key overhang.
While concerns around management succession have been allayed to some extent, the stock is relatively cheaper than discretionary peers despite its consistent execution, Morgan Stanley noted, as per reports.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
About The Author
