India's Vishal Mega Mart sinks to all-time low after core earnings margin contracts

Vishal Mega Mart

Wed 09:17

** Shares of Indian retailer Vishal Mega Mart VSSL.NS fall 5.6% to all-time low of 89.2 rupees
** Co, which sells groceries, household items and apparel, says its operating EBITDA margin narrowed to 7.7% in Q2 from 8.5% a year earlier
** Co's profit rose 3.7% y/y, rev from ops yp 14% y/y
** Margin was impacted by shift in festive buying from Q2 to Q3, co says
** Q2 is traditionally a strong quarter for consumer companies as festive season purchases boost earnings 
** More than 15.3 mln shares change hands by 1:30 pm IST, 1.5x the 30-day avg
** VSSL, on avg, rated "buy" by 19 analysts; median PT is 150 rupees - LSEG-compiled data
** Stock down 34.6% YTD
     

 (Reporting by Abhirami G in Bengaluru)
 ((abhirami.g@thomsonreuters.com))