Vishal Mega Mart shares soar 10% after CEO reappointment. Here's why Morgan Stanley sees 41% upside
Vishal Mega Mart surged after the company reappointed Gunender Kapur as Founder, MD & CEO for a five-year term through August 2031. Morgan Stanley retained its ‘Overweight’ rating, saying the move eases succession concerns and provides continuity to the retailer’s growth strategy, while maintaining a Rs 146 target price, implying over 41% upside from the previous close.
Vishal Mega Mart shares experienced a 10% increase on Monday after the company announced the reappointment of CEO Gunender Kapur for a five-year term. Morgan Stanley expressed optimism, citing the move as alleviating succession-related concerns and providing continuity to the company's growth strategy. The shares reached a record high of Rs 113.70, their highest level in over a month, and are on track to set the biggest single-day jump since late April 2025.
Gunender Kapur's current three-year term as Managing Director and CEO was set to end on June 26, 2027, but the board approved his reappointment for a five-year period starting September 1, 2026, until August 31, 2031. Morgan Stanley maintains an 'Overweight' rating on Vishal Mega Mart shares, with a target price of Rs 146, indicating a potential upside of more than 41% from the stock's previous closing price of Rs 103.43.
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