Avenue Supermarts (DMART) hit a new high today, climbing more than 8% to hit Rs. 723 per share as of this writing.This level of appreciation in the company's share price is unwarranted optimism, based on Avenue Supermart's estimated earnings for FY17 - its now trading at 86 times its estimated earnings for FY17, and the air in the baloon is consequently likely to go out once the firm posts its quarterly and annual results. While the company's margins are strong, there are enough unknowns in this stock for now, including seasonality effects on its sales and performance. 

At this point Avenue Supermarts' share price has crossed the targets of analysts, since even the most bullish pegged share price targets below Rs. 700. Analysts at Prabhudas Lilladhar for example had pegged the target price for Dmart at Rs. 660 in its buy report. The current price has turned into a bumper haul for those who had successfully subscribed to the company's IPO, which had been offered at Rs. 295-299 per share, in what looks like the deal of the year for investors. 

Photo source: Dmart