Avenue Supermarts Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 184972.06 Crore) operating in Retail sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 7587.32 Crore, up 41.60 % from last quarter Total Income of Rs 5358.37 Crore and up 11.33 % from last year same quarter Total Income of Rs 6815.00 Crore. Company reported net profit after tax of Rs 446.95 Crore in latest quarter.
Investment Rationale
With the emergence of the second COVID-19 wave, the stock has corrected 14% over the last one month, yet it continues to garner rich valuation with FY23E EV/EBITDA and P/E of 46x and 74x, respectively. The increase in COVID intensity could see a further correction. The brokerage maintains neutral rating with a TP of INR2,878 per share, ascribing 46x EV/EBITDA on a FY23E basis.
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of March 31, 2020. FIIs held 9.6 per cent while DIIs held 6.6 per cent, and public and others 8.8 per cent.
