Buy Avenue Supermarts, target price Rs 4440: JM Financial

JM Financial has buy call on Avenue Supermarts with a target price of Rs 4440. The current market price of Avenue Supermarts is Rs 3669.8. 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 239022.38 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 10673.90 Crore, up 6.03 % from last quarter Total Income of Rs 10067.21 Crore and up 36.56 % from last year same quarter Total Income of Rs 7816.44 Crore. Company has reported net profit after tax of Rs 685.71 Crore in latest quarter.

The company’s top management includes Mr.Ramesh Damani, Mr.Ignatius Navil Noronha, Mr.Ramakant Baheti, Mr.Elvin Machado, Mrs.Manjri Chandak, Mr.Chandrashekhar Bhave, Ms.Kalpana Unadkat. Company has S R B C & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 65 Crore shares outstanding.

Investment Rationale
The brokerage continues to like DMart - businesses with such long growth runways are rare and one should not get too carried away by short-term weakness(es). The brokerage reckons the stock can easily deliver double-digit compounding over the coming five years even if PER (currently 85x FY24E) compresses significantly over that timeframe.

Promoter/FII Holdings
Promoters held 74.99 per cent stake in the company as of 31-Dec-2022, while FIIs owned 8.59 per cent, DIIs 7.06 per cent.