Company Snapshots

• Avenue Supermarts Limited (DMart) is a national supermarket chain, with a focus on value-retailing.
• Focused on Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories
• As of Dec,23 Co. operates 365 stores across 22 cities and one union territory
• Revenue from Sales per Retail Business Area sq ft (FY20 : Rs. 32,879)  (FY23 : Rs. 31,096)

Revenue Breakup

Following is the revenue breakup of the Dmart (Avenus Supermarts ltd)

1. Foods: 56% in 2024
2. Non Foods (FMCG): 21 % in 2024
3. General Merchandise & Apparel: 23% in 2024

Stores Expansion

Fundamental Analysis

Key Ratios

Financial Trend

Revenue: 5  Year Comparison

• 2020: 24,870 crore
• 2024: 50,789 crore
• 5 Year Percentage change: 104.20 %
  

Net Profit: 5 Year Comparison

• 2020: 1,301 crore
• 2024: 2,536 crore
• 5 Year Percentage change: 94.94 %
  

Shareholding Pattern

Change in Shareholding Pattern

Promoters:

• 1 Year Change: -0.29%
• Analysis: Promoters’ shareholding has decreased slightly by 0.29%, indicating a minor reduction in their stake.

Foreign Institutional Investors (FIIs):

• 1 Year Change: +1.05%
• Analysis: FIIs’ shareholding has increased by 1.05%, showing a rise in foreign investment and confidence in the company.

Domestic Institutional Investors (DIIs):

• 1 Year Change: +0.46%
• Analysis: DIIs’ shareholding has increased by 0.46%, indicating a slight rise in domestic institutional investment.

Government:

• 1 Year Change: +0.04%
• Analysis: Government shareholding has increased slightly by 0.04%, indicating a minor increase in government stake.

Public:

• 1 Year Change: -1.28%
• Analysis: Public shareholding has decreased by 1.28%, suggesting a reduction in retail investor participation.

Stock Price Returns

1 Year Stock Returns

• Dmart has given 1 Year returns of 34.34 %
• 1 Lakh invested in July 2023 would have become 1.34 Lakhs in July 2024

5 Year Stock Returns

• Dmart has given 1 Year returns of 240.86 %
• 1 Lakh invested in July 2020 would have become 3.86 Lakhs in July 2024
• From August 2021 till July 2024 in the span of 3 years dmart has given 0 % returns to their investors despite of increase in the revenue & net profit

Company Valuation

• Current PE- 124
  
• Median PE- 122
  
• Company is fairly valued: As the Median PE is same as of Current PE then we can say that Dmart is fairly valued at this point of time.

Should you Invest ?

• Dmart is consistently increasing its store count as well as they are increasing Revenue & Net Profit as well so it is sitting at all time high revenue & net profit
• As there is very minimal debt so the company is fundamentally strong & have the good potential to grow rapidly in near future.
• At this current market price of (Rs 5019) company is fairly valued & it the right time to accumulate Dmart stock as it has not given any returns in last 3 years
• Dmart being the large cap company & has the potential to grow steadily, one should have this company in their portfolio as this is FMCG sector stock & it will act as the defensive stock, even if there are correction in the market this stock will not go down drastically.

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Disclaimer

• Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
• This article is a complete guide about Avenue Supermarts Ltd (Dmart)
• These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
• Also, We have talked in detail about the share’s future prospects and growth potential.
• Hopefully, this information will help you in your further investment.
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