Avenue Supermarts Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for DMART, BSE:540376 Avenue Supermarts Ltd.

Avenue Supermarts Ltd.

05 Aug 2020

4475.40

-1.20%

Avenue Supermarts Ltd

Hold: Avenue Supermarts Ltd.

ICICI Securities Limited

We attended the annual conference call on Avenue Supermarts (D-Mart) to get an insight into the outlook and challenges lying ahead owing to the Covid-19 pandemic. Majority of the questions (as anticipated) were pertaining to future plans regarding its e-commerce play (DMart Ready') and views on intensified competition from new entrants with deep pockets. The management reiterated its stance of not aggressively foraying into ecommerce play and rather focusing on further consolidating its position to be an eminent player in the brick & mortar format. Over the years, D-Mart, through its proven business model, has been able to maintain consistent...

Avenue Supermarts Ltd. is trading above its 200 day SMA of 4058.0

Avenue Supermarts Ltd.

05 Aug 2020

4475.40

-1.20%

Preparing for normalcy; bringing back lost customers

Sell: Avenue Supermarts Ltd.

Motilal Oswal

5 August 2020 DMart has reopened most stores, and sales have reached ~80% across assortments as customer traffic is gradually returning to stores given the brands value offering. Same-store sales growth (SSSG) has fallen but is not concerning, excluding the high base of last year and select low-performing stores. Management indicated that in terms of store adds, it aims to make up for the lost period of lockdown with ~59 store additions over FY2122 (the next six quarters). B) It would focus on larger sized stores, predominantly in semi-urban and lower tier cities, that may have slightly sluggish metrics in the near term, but bring longer term growth, operating leverage, premiumization, and thus ROIC. However, it believes online is still restricted to the urban markets, where DMart Ready offers both delivery and pick-up options at more attractive pricing v/s online and would wait for the model to turn profitable.

Avenue Supermarts Ltd. has an average target of 4246.00 from 6 brokers.

Avenue Supermarts Ltd.

05 Aug 2020

4475.40

-1.20%

Analyst Meet Update - Setbacks Temporary, Upgrade to Hold

Hold: Avenue Supermarts Ltd.

Recommendation Target

Prabhudas Lilladhar

from Hypermarts to Kirana and Ecom 2) slow pick-up in apparel and general merchandise 3) setback to Premiumisation as upper middle class cuts store visits 4) volatility due to localized lockdowns from time to time and 5) lower store openings in current year as Covid 19 has hit construction for 4 months. We assume addition of 20/40 stores in FY21/FY22 and decline of 6% in Bills/store/day and 4% in average bill value. D'Mart trades at 62xFY23 EPS. D'Mart is also experiencing with a convenience store in D'Mart Ready,...

Avenue Supermarts Ltd. is trading above its 200 day SMA of 4058.0

Avenue Supermarts Ltd.

13 Jul 2020

4475.40

-1.20%

AVENUE SUPERMARTS LIMITED

Sell: Avenue Supermarts Ltd.

Recommendation Target

Geojit BNP Paribas

Avenue Supermarts Ltd (DMart) owns & operates India's most profitable supermarket, DMart. It provides products like Food, Non-Food (FMCG), General Merchandise & Apparel through 216 stores (total 8mn sq. ft). We downgrade DMart to Reduce rating with new Target of Rs2,100...

Avenue Supermarts Ltd. is trading below its 30 day SMA of 4681.2

Avenue Supermarts Ltd.

12 Jul 2020

4475.40

-1.20%

Avenue Supermarts: Q1FY21 Result Review

Sell: Avenue Supermarts Ltd.

Recommendation Target

IDBI Capital

Avenue Supermarts (DMART) 1QFY21 result was operationally in-line while PAT was better than expected due to higher other income. Store shutdowns, restrictions on selling high-margin non-essential products and strict social distancing norms inside the stores contributed towards dismal performance in Q1FY21. Online sale remain strong as customers preferred safety and convenience. Adding 2 stores of size 1 lakh sqft each is departure from DMART's usual strategy of opening 40-50k sqft size stores. Large-size stores should ideally be more profitable if the company maintains its usual inventoryturnout of 14x.Given the strength of DMART's balance sheet with Rs 29bn unutilized money from QIP, it would be opportune time to bargain real-estate and further...

Avenue Supermarts Ltd. is trading below its 30 day SMA of 4681.2

Avenue Supermarts Ltd.

11 Jul 2020

4475.40

-1.20%

Store closures drag down profit

Sell: Avenue Supermarts Ltd.

Target

Motilal Oswal

As a result, revenue witnessed a 34% drop and estimated same-store sales growth (SSSG) fell -55%; the closure of the margin-accretive non-food section dragged down gross margins by ~220 bps, translating to 81% YoY decline in EBITDA. DMarts consolidated revenues fell 33% YoY to INR39b (6% below est.) on sales of mostly essential products witnessed at DMart stores and many stores remaining shut in the initial phase of the nationwide lockdown. Gross profit fell 42% YoY (in-line) and gross margins (GM) contracted 220bps YoY to 14.2% (90bp below estimate). This is attributable to the high- margin General Merchandise and Apparel sections of retail stores being closed during the lockdown and stores in some areas (with high local restrictions) continuing to operate sales only for essentials items. Subsequently, loss of INR3b in gross profit directly impacted EBITDA, which fell 81% YoY to INR1.1b (28% below est.); EBITDA margins contracted 740bps to 2.

Avenue Supermarts Ltd. is trading above its 200 day SMA of 4058.0

Avenue Supermarts Ltd.

11 Jul 2020

4475.40

-1.20%

Q1FY21 Result Update - Resilient model, Covid challenges remain - Reduce

Sell: Avenue Supermarts Ltd.

Target

Prabhudas Lilladhar

Store expansion plan suffers (just 2 added in 1QFY21), will impact FY22/23 D'Mart 1Q21 shows full impact of COVID19 with lower footfalls, higher cost of operations and restrictions on sale of non-essentials. However, being positive at EBIDTA and PAT level shows the resilience of business model with little rentals and interest cost. Although recovery of 80%+ of pre-Covid sale...

Avenue Supermarts Ltd. has an average target of 4246.00 from 6 brokers.

Avenue Supermarts Ltd.

27 May 2020

4475.40

-1.20%

Avenue Supermarts

Hold: Avenue Supermarts Ltd.

Recommendation Target

ICICI Securities Limited

For FY20, revenue growth marginally tapered down to 24% YoY to | 24870.2 crore. Growth was mainly driven by aggressive store addition pace in FY20. DMart added record 38 stores (1.9 mn sq ft addition) taking total store count to 214 stores spread across 7.8 mn sq ft. The company continued to add larger stores with average sq ft of ~50000 (vs. average runrate 30000 sq ft.). Same store sales (SSSG) growth dipped to 10.9% vs. 17.8% in FY19. SSSG for matured stores (>five years) slowed down whereas new stores are peaking at faster clip (even before they qualify for 24 months SSSG calculations). EBITDA margins (adjusting for Ind-AS 116)...

Avenue Supermarts Ltd. is trading above its 200 day SMA of 4058.0

Avenue Supermarts Ltd.

27 May 2020

4475.40

-1.20%

Avenue Supermarts Ltd

Buy: Avenue Supermarts Ltd.

Angel Broking

For 4QFY2020, Avenue Supermarts Ltd (ASL) posted mixed results. On the top-line front result was in-line, however EBITDA was below our estimates. Consolidated revenue grew by ~24% yoy; reported operating margins contracted by 68bps yoy. On the bottom-line front, ASL reported PAT growth of ~42% yoy due to lower taxes. We forecast ASL to

Avenue Supermarts Ltd. is trading above its 200 day SMA of 4058.0

Avenue Supermarts Ltd.

25 May 2020

4475.40

-1.20%

Avenue Supermarts: Q4FY20 Result Review

Hold: Avenue Supermarts Ltd.

Recommendation Target

IDBI Capital

Avenue Supermarts (DMART) reported better than expected result. Strong performance in the month of Jan'20 and Feb'20 was offset by moderate performance in Mar'20. Operating profit margins contracted due to higher discounting and revenue loss in high-margin-accretive GM and apparel business during lock-down in Mar'20. Absenteeism of staff due to COVID19 fear is a major cause of concern. DMART rolled out incentive (hardship allowance) and safety driven measure to win-back employees. Recovery in revenue during first 2 weeks of May'20 at +17% over Apr'20 (-45% YoY) is encouraging but significantly below normal levels. We believe, FY21E will be very...

Avenue Supermarts Ltd. has an average target of 4246.00 from 6 brokers.

Is Avenue Supermarts Ltd. worth buying?

1661 Votes:

Buy 67.67%

Sell 16.68%

Hold 15.65%

RESEARCH REPORTS

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