Four Directors at Avenue Supermarts Ltd sold 55,908 shares at between 3,747.570INR and 4,000.000INR. The significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's direct...
Avenue Supermarts: Store additions healthy but demand environment subdued (DMART IN, Mkt Cap USD33.8b, CMP INR4303, TP INR4100, 5% Downside, Neutral) Avenue Supermarts (DMART) posted an EBITDA/Adj. PAT growth of 33%/ 30% YoY (11%/14% miss), respectively, in 2QFY23. Revenue per store was up 9% YoY/10% v/s pre-Covid, but revenue/sqft was still 10% below pre-Covid level of 2QFY20 due to higher store size and inflationary pressure seen in non-food category. However, store additions remained stro...
AVENUE SUPERMARTS: To focus on growth, expand the e-commerce business (DMART IN, Mkt Cap USD34.5b, CMP INR4237, TP INR3740, 12% Downside, Neutral) Is the sluggish recovery or higher store sizes hurting sales productivity and gross margin? Revenue/sq. ft. has been sluggish (-8% CAGR) over the last three years. The management sees little cause for concern as the Mass Discretionary segment (27% of revenue) is yet to fully recover. It appeared optimistic that high bill values have partly compensa...
The independent financial analyst theScreener just lowered the general evaluation of AVENUE SUPERMARTS (IN), active in the Food Retailers & Wholesalers industry. As regards its fundamental valuation, the title now shows 2 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date December 17, 2021, the closing p...
(DMART IN, Mkt Cap USD45.9b, CMP INR5360, TP INR4900, 9% Downside, Neutral) Avenue Supermarts (DMART)'s consol EBITDA/PAT grew >2x YoY on strong revenue recovery of 47% YoY (30% above pre-COVID levels). This was coupled with healthy improvement of 40bp/240bp in gross/EBITDA margins, as opex cost optimization was much better than expected. We revise our FY22/FY23 EBITDA/PAT estimates by ~15%, largely extrapolating current cost efficiencies, even as sharp revenue recovery was built into our...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Avenue Supermarts 3QFY20: Store adds strong, but slowing SSSG to impact return profile (DMART IN, Mkt Cap USD16.6b, CMP INR1877, TP INR1700, 9% Downside, Sell) DMART delivered another strong quarter in a consumption slowdown context, albeit with an inline but a decelerating revenue growth print. High capex and moderating revenue growth could crimp return ratios and compress the stretched valuation multiples. Retain SELL with unchanged estimates. Slowing growth but margin reset cycle b...
Squarely in the neutral camp At this point in time the major global indexes (MSCI ACWI, ACWI ex-US, EAFE, EM) have failed to break above their respective resistance levels, leaving us squarely in the neutral camp. • We need to see more from cyclical value. We believe the aforementioned major global indexes are likely to remain below resistance or have limited upside unless and until we see more definitive signs of bottoming within cyclical value areas of the market (e.g., Materials, Energy, ...
We attended Avenue Supermart’s analyst meet and were impressed by its obsession of providing ‘everyday low prices’ to its consumers. Management was happy with its SSG performance of 17.8% for FY19 but was displeased with just 21 store additions last fiscal; it is hopeful of an acceleration in store additions (on a rolling basis) but within their conservative framework. Competitive intensity (discounting) has increased dramatically in the past 12-18 months but Avenue continues to provide the best...
Avenue Supermarts: Growth prospects strong, but margin headwinds blowing fiercely (DMART IN, Mkt Cap USD11.8b, CMP INR1310, TP INR1115, 15% Downside, Sell) DMart hosted its annual analyst meet. Key takeaways: Management indicated that it is looking at accelerating store addition (v/s 21 in FY19) and that it is open to further explore the lease model to reduce the capex intensity (capex/sq.ft. up 2.5x over FY16-19). We expect 24 store adds and 26% revenue CAGR over FY19-21. The company...
Avenue Supermarts: Deceleration in earnings growth to put pressure on valuation (DMART IN, Mkt Cap USD11.2b, CMP INR1254, TP INR1125, 10% Downside, Sell) Cost pressure continues to restrict earnings growth: Standalone revenue surged 32% YoY to INR50.3b (in-line) on robust store additions (12 stores v/s +14 stores in 4QFY18/est.) coupled with strong SSSG. Despite strong revenue growth, pressure on gross margin (GM) continued. GM contracted 50bp YoY to 14.4% (-30bp QoQ), potentially due to ...
Avenue Supermarts: Margin pressures evident; Rich valuations restricting re-rating (DMART IN, Mkt Cap USD13.9b, CMP INR1569, TP INR1400, 11% Downside, Sell) Revenue growth robust, but no relief on margins: Revenue grew robustly by 33% YoY to INR54.5b (in-line) in 3QFY19. However, the company continued facing margin pressure (gross margin down 170bp YoY to 14.7% off a high base), mainly due to its focus on price competitiveness. Consequently, EBITDA increased by a modest 7.5% YoY to INR4.5...
AVENUE SUPERMARTS: Margin cap to restrict pace of earnings growth; Competitive pricing by peers led to shrinking gross margin (DMART IN, Mkt Cap USD11.3b, CMP INR1333, TP INR1124, 16% Downside, Sell) EBIDTA and PAT growth lags revenue growth on shrinking gross margin: Avenue Supermarts (DMart) revenue increased 39% YoY to INR48.7b (estimated INR44.6b) in 2QFY19. EBITDA/PAT; however, grew 23%/18% YoY to INR3.9b/INR2.3b (estimated INR4.4b/INR2.6b) lagging much below revenue growth. This is ...
YTD sideways congestion for the MSCI ACWI ex-US and an intact downtrend for the MSCI EM index continue to point to a risk-off environment for international equity markets, and supports our neutral outlook (at best)... see page 2. We continue to recommend avoiding broad indexed exposure in favor of selectivity. In today's report we highlight actionable country- and Sector-specific themes: • Norway and India are leadership. Norway's Oslo OBX and India's SENSEX remain global leaders. Overweight ...
Avenue Supermarts: Outperformance on most fronts; stratospheric valuations leave little room for rerating (DMART IN, Mkt Cap USD14.5b, CMP INR1594, TP INR1117, 30% Downside, Sell) EBIDTA and PAT exceed estimates: DMart’s revenue increased 27% YoY to INR45.6b (est. of INR43.9b) in 1QFY19. EBIDTA grew 39% YoY to INR4.2b (est. of INR3.8b), with the margin expanding 80bp YoY to 9.3%. Other income declined 38% YoY to INR143m (est. of INR50m). Adj. PAT grew 43% YoY to INR2.5b (est. of INR2.2b)....
We present key takeaways from our management interaction at Avenue Supermarts’ (DMART) analyst meet. DMART is India’s largest value retailer brand by revenue and profits. On a strong base of FY17, the company delivered 26%/38%/68% yoy sales/EBITDA/PAT growth, respectively, in FY18. This was the company’s first interaction post its IPO meet in March 2017, wherein management reiterated its strategy of driving value to the consumer through lowest prices. The management indicated that it would conti...
Avenue Supermarts: Results in-line; but like-to-like growth declines (dmart IN, Mkt Cap USD11.2b, CMP INR1467, TP INR900, 39% Downside, Sell) Revenue and margins in line with estimates DMart’s revenue increased 22% YoY to INR38.1b (est. of INR38.9b) in 4QFY18. EBIDTA grew 42% YoY to INR2.9b (est. of INR3.1b), with the margin expanding 100bp YoY to 7.7%. Other income rose 51% YoY to INR0.2b (est. of INR0.1m). Adj. PAT grew 73% YoY to INR1.6b (est. of INR1.7b) in the quarter. PAT margin e...
Avenue Supermarts: Steady quarter; store addition may accelerate in 4Q (DMART IN, Mkt Cap USD11.6b, CMP INR1182, TP INR920, 22% Downside, Sell) In-line revenue; better sales mix drives margins: DMART’s revenue increased 22.6% YoY to INR40.94b (est. of INR42.4b) in 3QFY18. EBITDA margin expanded 170bp YoY to 10.3% (est. of 9.3%), with the gross margin expanding 130bp YoY to 16.4%. The margin expansion can be majorly attributed to: 1) an improvement in centralized sourcing, which is now 45%-50...
The company’s core business is as a food and grocery retailer. In 2017, it operated around 130 stores, all under the D-Mart banner. D-Mart stores are concentrated in only a few major states of India, including Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Madhya Pradesh, Telangana and Chhattisgarh. Euromonitor International Local Company Profiles are a concise set of briefings detailing the strategic direction taken by a company. Discover key contact details, the company background and the...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.