Vishal Mega Mart IPO - Analysis | Vishal Mega Mart IPO | Nifty and Bitcoin analysis | 9/12/2024

Summary

In this video, the host provides a detailed analysis of Vishal MegaMart's upcoming IPO, Bitcoin market trends, and strategies for short-term trading. The Vishal MegaMart IPO opens on 11th December 2024, with strong financial growth but some risks, including pending investigations. Bitcoin is currently in an expansion phase, with key support and resistance levels highlighted. Stock market strategies focus on Nifty and Bank Nifty, offering insights into potential intraday and short-term movements. The host also recommends Delta Exchange for crypto trading, offering futures and options with an Indian regulatory framework.

Takeaways

• 😀 Vishal Mega Mart's IPO opens from December 11-13, with a price band between ₹74-78 per share and a lot size of 190 shares.
• 😀 The company was incorporated in 2001 and is known for its wide range of retail products, with a strong presence in multiple locations.
• 😀 Retail investors have a 35% allocation in the IPO, which could increase their chances of receiving shares in the allotment process.
• 😀 Vishal Mega Mart has shown significant financial growth, with a 17% revenue increase and a rise in profit after tax from ₹200 crore in 2022 to ₹461 crore in 2023.
• 😀 The company's return on capital employed (ROCE) is 68%, indicating strong profitability, while the earnings per share (EPS) stands at ₹1.13.
• 😀 One major risk is that Vishal Mega Mart doesn't manufacture its products; it operates as a middleman, sourcing products from others and selling them with a commission.
• 😀 Another risk includes pending inquiries by the Enforcement Directorate (ED) related to the company's activities, which could impact its reputation.
• 😀 Despite competition in the retail sector, Vishal Mega Mart's profitability and market presence give it an edge over many other companies in the same space.
• 😀 The valuation of the IPO seems slightly high compared to other upcoming IPOs, but strong demand and profitability could justify the premium price.
• 😀 Bitcoin’s market is currently in an expansion phase, with resistance around $11,000 and support at $9,100. Short-term traders should be cautious and look for consolidation within the $91,000 to $111,000 range.

Q & A

What is the core business model of Vishal Mega Mart?

Vishal Mega Mart operates as a marketplace, sourcing products from various suppliers and selling them to consumers. They do not manufacture products themselves but take a commission on sales.

When is the Vishal Mega Mart IPO opening, and what is the allotment date?

The Vishal Mega Mart IPO will open from December 11 to 13. The allotment will be decided by December 16, with shares expected to be credited to investors' accounts by December 18.

What is the total IPO size of Vishal Mega Mart?

The total IPO size of Vishal Mega Mart is ₹8,000 crore, which is entirely an Offer for Sale (OFS).

What is the retail investors' quota in Vishal Mega Mart's IPO?

The retail investors' quota in Vishal Mega Mart's IPO is 35%, which increases the chances of allotment for retail investors.

What are the key financial highlights of Vishal Mega Mart?

Vishal Mega Mart has shown impressive growth with total assets worth ₹9,500 crore, a 17% revenue growth, and a 43% increase in profit after tax in 2023 compared to 2022.

What are the risks associated with Vishal Mega Mart's business?

The key risks include reliance on third-party manufacturers, ongoing inquiries from the Enforcement Directorate (ED), and intense competition in the retail sector, which may impact profitability.

How does the price-to-earnings (P/E) ratio of Vishal Mega Mart compare to its competitors?

Vishal Mega Mart's P/E ratio is 69, which is higher than Avenue Supermarts' (DMart) P/E ratio of 58. The P/E ratio is a key indicator of valuation, and it suggests that the company may be priced at a premium.

What is the current Grey Market Premium (GMP) for Vishal Mega Mart's IPO?

The Grey Market Premium for Vishal Mega Mart's IPO is around ₹78, indicating a positive investor sentiment and potential demand for the stock.

What is the expected listing date for Vishal Mega Mart's IPO?

The tentative listing date for Vishal Mega Mart's IPO is December 18.

How is Bitcoin's current market trend being analyzed in the video?

The video mentions that Bitcoin is in an expansion phase, with resistance around $11,000 and support at $9,160. The analysis suggests a range-bound consolidation, with potential opportunities for both short-term trading and long-term positioning.