Time period given by analyst is one year when Avenue Supermarts Ltd. price can reach defined target.
Avenue Supermarts Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 323239.57 Crore) operating in Retail sector.
Avenue Supermarts Ltd. key Products/Revenue Segments include Income from Retailing and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 7816.44 Crore, up 49.90 % from last quarter Total Income of Rs 5214.58 Crore and up 45.87 % from last year same quarter Total Income of Rs 5358.37 Crore. Company reported net profit after tax of Rs 417.76 Crore in latest quarter.
Investment Rationale
DMART’s anchor variable (footfalls) and consequently unit economics remain sub-optimal (improving though). While the brokerage factors in a full recovery in the next 2-3 quarters, this assumption can be challenged by heightened competitive intensity from deep-pocketed retailers. Hence, the brokerage maintains SELL recommendation on DMART with a revised DCF-based TP of INR 2,700/sh (earlier 2,260/sh), implying 35x Dec-23E for the standalone business + 4x Dec-23E sales for DMART Ready.
Promoter/FII Holdings
Promoters held 74.99 per cent stake in the company as of 30-Sep-2021, while FIIs owned 9.95 per cent, DIIs 6.77 per cent.
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