The stock of Avenue Supermarts Ltd, which operates the DMart chain of retail stores, has detected a significant rebound in the last months, increasing 23% since the company declared its March quarter results (Q4FY22) in May. It assisted that the shares had noticed a sharp improvement from the highs before Q4 numbers.
Avenue Supermarts, which is supported by Radhakishan Daman, has recorded standalone earnings from operations of Rs 7,303.13cr for the quarter ending March 2021, up from Rs 6,193.53cr in the exact period last year. D-Mart stores are acquired and governed by Avenue Supermarts. D-Mart is a national supermarket chain that gives customers a vast diversity of home and personal commodities under one roof.
The entire number of stores as of March 31, 2021, was 234. Avenue Supermarts has started 22 new stores and renovated two others into fulfilment centres for Avenue E-commerce during the fiscal year 2020-21. Shares of Avenue Supermarts were detected trading at Rs 2,863, up 0.52%. It stirred an intra-day high of Rs 2,879 during the trade. Avenue Supermarts’ consolidated net profit boosted 16.4% to Rs 446.95 crore in Q3 December 2020 over Q3 December 2019 on a 10.8% increase in net sales to Rs 7,542 crore. Impact of Coronavirus (Covid-19) Growth in 2 years and older stores was 6% in January-February 2021, correlated to the exact period the previous year. When distinguishing the first 15 days of March 2021 from the first 15 days of March 2020, these stores encountered a 9.4% decline. This is especially due to full or partial lockdowns carried out across cities starting up in March 2021 in reaction to a boost in Covid-19 cases.
As such, investors seem to be factoring a decent portion of the optimism on expansion prospects. At present, the shares are further than 30% lower than their 52-week high of ₹5,900 apiece seen on 18 October. Nonetheless, valuations do not offer much reprieve. Valuations have come off the maximum but are yet above pre-covid averages, analysts announced. Bloomberg data indicates the stock is now trading at 78 times tallied FY24 earnings, which is relatively abrupt.
Follow and connect with us on Facebook, LinkedIn & Twitter.
