Avenue Supermarts Ltd (DMart)

Company Overview:

Avenue Supermarts Ltd was incorporated on May 12, 2000. Avenue Supermarts Ltd offer wide range of products with a focus on the Foods, Non-Food (FMCG) and general Merchandise & Apparel product categories. Avenue Supermarts Ltd was one of the Largest & most profitable F&G Retailer in India. Their store operate under “D-MART” in their market of operation, which is registered as a trademark under various classes of products.

Ramesh S. Damani is the Chairman and an Independent Director of the company. He has over 18 years of experience in Securities Market.

As of 2012, Avenue Supermarts Ltd had 306 stores with Retail Business Area of 12.6 million sq. ft., located across 45 cities in Maharashtra (59), Gujarat (27), Telangana (13), Karnataka (7), Andhra Pradesh (4), Madhya Pradesh (3), Chhattisgarh (1) and NCR (1), Daman (1) and Rajasthan (2).

 The company operate predominantly on an ownership model (including long-term lease arrangements, where lease period is more than 30 years and the building is owned by the company) rather than on a rental model. The company open new stores using a cluster approach on the basis of adjacencies and focusing on an efficient supply chain, targeting densely-populated residential areas with a majority of lower-middle, middle and aspiring upper-middle class consumers. ASL operate distribution centres and packing centres which form the backbone of their supply chain to support their retail store network.

Entrance into the pharmacy retail market

D-Mart is venturing into pharmacy retailing and has set up a subsidiary Reflect Healthcare and Retail Private Limited. D-Mart would commence a pharmacy shop-in-shop, which would use the existing store infrastructure to sell pharmacy products.

Valuation

“At its current market price, the stock has a P/E ratio of 77 times its estimated earnings for fiscal year 24. It may be a good strategy to purchase the stock during market downturns.”

FinancialDec-22Sep-22Jun-22Mar-22
Revenue11,30410,3849,8068,606
Expenditure10,3429,5018,8107,875
Net Profit641730679466
Net Profit Margin5.677.036.935.42
Earning Per Share9.9011.2810.497.20

D’mart IPO Details:

Issue Open8 Mar 2017
Issue Close10 Mar 2017
Issue Size1,870 Cr
Price Band295-299
Bid Lot50 share
Issue RegistrarLink Intime
Finalize Basis of Allotment16 Mar 2017
Credit share in D’mat A/c20 Mar 2017
Listing Date21 Mar 2017

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