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.
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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.”
| Financial | Dec-22 | Sep-22 | Jun-22 | Mar-22 |
|---|---|---|---|---|
| Revenue | 11,304 | 10,384 | 9,806 | 8,606 |
| Expenditure | 10,342 | 9,501 | 8,810 | 7,875 |
| Net Profit | 641 | 730 | 679 | 466 |
| Net Profit Margin | 5.67 | 7.03 | 6.93 | 5.42 |
| Earning Per Share | 9.90 | 11.28 | 10.49 | 7.20 |
D’mart IPO Details:
| Issue Open | 8 Mar 2017 |
| Issue Close | 10 Mar 2017 |
| Issue Size | 1,870 Cr |
| Price Band | 295-299 |
| Bid Lot | 50 share |
| Issue Registrar | Link Intime |
| Finalize Basis of Allotment | 16 Mar 2017 |
| Credit share in D’mat A/c | 20 Mar 2017 |
| Listing Date | 21 Mar 2017 |
