Street View: India's Vishal Mega Mart set for festive business boost

** India's Vishal Mega Mart VSSL.NS posted 3.7% rise in Q2 consolidated net profit, 14% rise in revenue from operations with same-store sales growth impacted by festive season shift

** Stock down 3.2% at 87.15 rupees

SET FOR STRONG THIRD QUARTER

** Jefferies ("buy", cuts TP to 130 rupees from 160 rupees) says co missed Q2 estimates, impacted by a festive shift affecting the apparel mix, but sets a strong stage for Q3

** Ambit ("buy", TP at 140 rupees) says co stands to gain market share, aided by supply chain-led price leadership and assortment, private-label portfolio, focus on smaller cities, which support +30% return on capital employed

** Emkay ("buy", TP at 170 rupees) says management commentary highlighted a strong start to the festive season in Q3, which should help recoup most of 2Q weakness; notes entry-level price points and discounts should help market share gains

** ICICI Securities ("buy", TP at 150 rupees) says co's growth could benefit from expansion in tier 2/3 markets, internally funded expansion, supply-chain investments and sticky loyalty base