Avenue Supermarts, Radhakrishna Damani owned company is gaining momentum on July 4

Avenue Supermarts, Radhakrishna Damani owned company is gaining momentum on July 4

by 5paisa Research Team Last Updated: Dec 09, 2022 - 12:52 pm 23.1k Views
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 At 2:02 pm, on July 4, the shares of Avenue Supermarts Ltd are trading 2.87 % higher.

At 2:02 pm, markets are trading flat. S&P BSE Sensex is trading at 52962 with 0.1 % gain. However, there is a lot of stock specific action. One of them is Avenue Supermarts Ltd. The company is owned by the ace investor of India, Radhakrishna Damani.

The company is engaged in the business of organized retail and operates several supermarkets stores under the brand “Dmart”. The company has a market capitalization of Rs 2.26 lakh crore.

Radhakrishna Damani holds almost 75% of the company. His holding in the company is worth around 1.7 lakh crore. Thanks to successful business of Avenue Supermarts and past profitable investments as an investor, Mr. Damani is among the top richest person in India.

The shares of Avenue Supermarts are rallying today as the company recently updated its Q1 FY23 results. The results are strong. The Q1 revenue improved by almost 95% on YOY basis, reported at Rs 9806 crore, as against Rs 5031.75 in Q1 of last fiscal. The revenue also showed 14% growth compared to Q4 FY22 figures.  

The company have added 10 more stores in first quarter of FY23, resulting into 294 total stores as of June 31, 2022. The revenue per store for the company is calculated to be at Rs 33.35 crore, a 7% growth on QOQ basis.  

The company has showcased a phenomenal growth in its business. The 3-year sales and profit growth are recorded at 16% and 19%, respectively. The company has a ROE and ROCE of 11.5% and 15.8%, respectively, as per March FY22 period ending. The company also has strong balance sheet with zero debt. The company has great financials and robust underlying business.  

Talking about valuations, the shares of Avenue Supermarts are trading at a high PE of 152x. This is because for the upcoming years, the market is expecting a similar continuation of growth number from the company.

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