Sell Avenue Supermarts, target price Rs 2950: HDFC Securities

HDFC Securities has sell call on Avenue Supermarts with a target price of Rs 2950. The current market price of Avenue Supermarts is Rs 4171.05. Time period given by analyst is one year when Avenue Supermarts Ltd. price can reach defined target.

Avenue Supermarts Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 272133.39 Crore) operating in Retail sector.

Avenue Supermarts Ltd. 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 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 reported net profit after tax of Rs 685.71 Crore in latest quarter.

Investment Rationale
The brokerage maintains SELL rating, with a DCF-based TP of INR2,950/sh, implying 34x Sep-24 EV/EBITDA for the standalone business + 4x Sep-24 sales for DMART Ready.


Promoter/FII Holdings
Promoters held 74.99 per cent stake in the company as of 30-Jun-2022, while FIIs owned 8.59 per cent, DIIs 6.88 per cent.