Buy Avenue Supermarts, target price Rs 4255: JM Financial

JM Financial has buy call on Avenue Supermarts with a target price of Rs 4255.The current market price of Avenue Supermarts is Rs 3756. Time period given by analyst is a year when Avenue Supermarts price can reach defined target.

Avenue Supermarts, incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 246016.18 Crore) operating in Retail sector.

Avenue Supermarts key Products/Revenue Segments include Income from Retailing and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 11904.18 Crore, up 12.02 % from last quarter Total Income of Rs 10627.18 Crore and up 18.25 % from last year same quarter Total Income of Rs 10067.21 Crore. Company has reported net profit after tax of Rs 658.71 Crore in latest quarter.

Investment Rationale
The brokerage continues to like DMart and maintains that businesses with such long growth runways are rare and hence it recommends investors to not get too carried away by short-term weakness(es).

Promoter/FII Holdings
Promoters held 74.93 per cent stake in the company as of 31-Mar-2023, while FIIs owned 8.17 per cent, DIIs 7.43 per cent.