Vishal Mega Mart shares soar 10% after CEO reappointment. Here’s why Morgan Stanley sees 41% upside

Shares of Vishal Mega Mart surged 10% on Monday after the company announced the reappointment of Managing Director and CEO Gunender Kapur for a five-year term. Morgan Stanley said the move eases succession-related concerns and provides continuity to the company’s growth strategy.

Vishal Mega Mart shares surged around 10% to Rs 113.70 apiece on Monday morning, the highest level seen in more than a month. The stock is also on track to record the biggest single-day jump since late April of 2025.

Gunender Kapur’s current three-year term as Vishal Mega Mart’s Managing Director and Chief Executive Officer was set to expire on June 26, 2027. The company on Friday said that its board of directors, during its meeting, approved the reappointment of the executive for a period of five years from September 1 onwards, till August 31, 2031. He has been redesignated as ‘Founder, Managing Director & Chief Executive Officer’ of the popular retailer.

Morgan Stanley on Vishal Mega Mart share price

Morgan Stanley maintained its ‘Overweight’ rating on the shares of Vishal Mega Mart with a target price of Rs 146 apiece, implying a potential upside of more than 41% from the stock’s previous closing price of Rs 103.43 apiece.
The international brokerage said Gunender Kapur’s reappointment as Managing Director and CEO for another five-year term starting September 1, 2026, along with the redesignation as Founder, MD & CEO, eases succession-related concerns and provides continuity to the company’s growth strategy, ET Now reported.

It added that the stock currently trades at 42.8 times its 12-month forward price-to-earnings multiple, which the brokerage considers attractive compared with discretionary peers. Consistent execution by the company further supports Morgan Stanley’s positive view on the stock.
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Vishal Mega Mart share price

Vishal Mega Mart shares have jumped around 6% in a week and 3.5% in a month, although the stock is down 18% in 2026 so far. After hitting a record high of Rs 157.60 apiece in August last year, the stock tumbled over 37% to hit a 52-week low of Rs 98.77 apiece this March.

The stock has, however, recovered more than 15% since then to trade at Rs 113.70 apiece today. Overall, the stock has delivered negative returns of around 26% over the past one year. The company currently has a market capitalisation of around Rs 52,650 crore.

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