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.

01 Jul 2019

4305.10

0.25%

Avenue Supermarts: Initiating Coverage

Buy: Avenue Supermarts Ltd.

IDBI Capital

We initiate coverage on Avenue Supermarts (DMART) with a BUY rating and target price of Rs 1,604 based on FY21E EV/EBITDA of 35x. Superior business model (ability to provide highest discount consistently on a profitable basis) and huge scope of penetration should help DMART to outperform competition. Concern on margin pressure due to rise in discounting intensity by online players is temporary (as has been proved globally) and not structural. To capture convenience driven online retail, DMART ready is best placed to drive aggressive growth. We forecast revenue/EBITDA /EPS to grow at 28%/32%/37% CAGR over FY19-21E....

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

Avenue Supermarts Ltd.

12 Jun 2019

4305.10

0.25%

Growth prospects strong, but margin headwinds blowing fiercely

Sell: Avenue Supermarts Ltd.

Target

Motilal Oswal

Management indicated that it is looking at accelerating store addition (v/s 21 inFY19) and that it is open to further explore the lease model to reduce the capex intensity (capex/sq.ft. up 2.5x over FY16-19). We expect 24 store adds and 26%revenue CAGR over FY19-21.

Avenue Supermarts Ltd. is trading below its 30 day SMA of 4609.5

Avenue Supermarts Ltd.

12 Jun 2019

4305.10

0.25%

Analyst Meet Update

Hold: Avenue Supermarts Ltd.

Target

Prabhudas Lilladhar

D'Mart Analyst Meet reinforced our confidence in Everyday low Prices and Change in Estimates | Target | Reco cluster based expansion strategy of the company. FY19 has been a tepid year due to lower than expected store openings and strategic margin correction...

Avenue Supermarts Ltd. is trading below its 30 day SMA of 4609.5

Avenue Supermarts Ltd.

16 May 2019

4305.10

0.25%

AVENUE SUPERMARTS LIMITED

Buy: Avenue Supermarts Ltd.

Recommendation Target

Geojit BNP Paribas

D'Mart maintains strong revenue growth in Q4FY19 at ~32%YoY, but EBITDA margin declined by 20bps YoY to 7.5%. Gross margin declined by 50bps YoY to 14.4% as the company focused on top line growth at the cost of margins. Store additions has been below expectation but still healthy at 21 stores in FY19 Vs 24 stores in FY18. Board has approved QIP issuance of 2.5cr shares (~Rs3,1bn at CMP) which could lead to faster pace of store additions while dilute EPS (4%) in near-term. Debt payment of Rs1,034cr (till FY19) out of total allocated...

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

Avenue Supermarts Ltd.

13 May 2019

4305.10

0.25%

Deceleration in earnings growth to put pressure on valuation

Sell: Avenue Supermarts Ltd.

Target

Motilal Oswal

to 14.4% (-30bp QoQ), potentially due to the company's recent focus on price competitiveness. EBITDA margins contracted 25bp YoY as the drop in GM was partly offset by operating leverage benefits. PAT grew 20% YoY (9% miss) to INR2b, as EBITDA growth was partly offset by 33% YoY increase in depreciation cost. For FY19, consol. revenue/EBITDA/PAT grew 33%/21%/12% YoY with 21 store additions, taking the total store count to 176. Risk of decelerating earnings growth: DMART's pace of footprint addition in FY19 slowed to 14% v/s the high-teens growth seen in the last 2-3 years....

Avenue Supermarts Ltd. is trading below its 30 day SMA of 4609.5

Avenue Supermarts Ltd.

12 May 2019

4305.10

0.25%

Q4FY19 Result Update - EPS cut by 6-4-11.4%, Upgrade to Hold

Hold: Avenue Supermarts Ltd.

Recommendation Target

Prabhudas Lilladhar

Looking at fresh issue of 25mn shares, another 25.6mn shares OFS likely to comply with 75% promoter equity by March 2020 We upgrade D'mart from Reduce to hold as 25% decline in share price in the last 5 months has reduced the froth considerably, although absolute returns might lag due to estimated fresh supply of ~Rs62bn in QIP and OFS. Business...

Avenue Supermarts Ltd. is trading above its 200 day SMA of 4080.8

Avenue Supermarts Ltd.

15 Jan 2019

4305.10

0.25%

AVENUE SUPERMARTS LIMITED

Hold: Avenue Supermarts Ltd.

Target

Geojit BNP Paribas

Strong revenue growth continues, but margin declines... Avenue Supermarts Ltd (D'Mart) owns & operates India's most profitable supermarket, D'Mart. It provides products like Foods, Non-Foods (FMCG), general Merchandise and Apparel categories through 164 stores (5.3 mn sq. ft). D'Mart sustains strong revenue growth in Q3FY19 at ~33%YoY, but EBITDA margin declined by 200bps YoY (+30bps QoQ) due to price cuts. Gross margin declined by 170bps YoY to 14.7% as the company focused on top line growth at the cost of margins....

Avenue Supermarts Ltd. is trading below its 30 day SMA of 4609.5

Avenue Supermarts Ltd.

14 Jan 2019

4305.10

0.25%

Q3FY19 Result Update - 5-10% EPS Cut

Sell: Avenue Supermarts Ltd.

Target

Prabhudas Lilladhar

We cut FY19 and FY20 EPS estimates of D'Mart by 10.7% and 5% following 200bps margin decline and just 2% PAT growth in 3Q19. D'Mart continues to focus on strong sales led by Everyday Low price strategy. Margins have been impacted by higher spends behind new store infrastructure, people and expenses to manage festive demand through higher operating hours. D'Mart has lowered prices across categories led by benefits from higher economies of scale which reinforces its pole position of a value retailer. D'Mart has growth strategy is place led by 1) gradual acceleration in store...

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

Avenue Supermarts Ltd.

13 Jan 2019

4305.10

0.25%

Revenue growth robust, but no relief on margins.

Sell: Avenue Supermarts Ltd.

Target

Motilal Oswal

by 33% YoY to INR54.5b (in-line) in 3QFY19. However, the company continued facing margin pressure (gross margin down 170bp YoY to 14.7% 13 January 2018 off a high base), mainly due to its focus on price competitiveness. Consequently, EBITDA increased by a modest 7.5% YoY to INR4.5b (5% miss), with the margin contracting 200bp YoY to 8.3%. PAT, too, grew by a marginal 2.1% YoY (8% miss) to INR2.6b due to lower other income (-37% YoY) and higher depreciation/finance cost (+33%/36% YoY). DMART added nine new stores in 9MFY19, (four in 3QFY19), taking its store count to 164. The store addition trend appears similar to last year 10 new stores added in 9MFY18. We, however, note that DMART tends to accelerate store addition toward the fiscal-end (14 new stores added in 4QFY18). In 4QFY19, too, it is likely to add 13-14 new stores.

Avenue Supermarts Ltd. is trading above its 200 day SMA of 4080.8

Avenue Supermarts Ltd.

16 Oct 2018

4305.10

0.25%

AVENUE SUPERMARTS LIMITED

Accumulate: Avenue Supermarts Ltd.

Target

Geojit BNP Paribas

Top line growth improves, but margin declines... Avenue Supermarts Ltd (D'Mart) owns & operates India's most profitable supermarket, D'Mart. It provides products like Foods, Non-Foods (FMCG), general Merchandise and Apparel categories through 160 stores (5.1 mn sq. ft). D'Mart reported a robust revenue growth of ~39%YoY in Q2FY19, but EBITDA margin declined by 110bps YoY due to decline in gross margin. Gross margin declined by 180bps to 14.3% as the company focused on top line growth by reducing prices indicating competitive pressure....

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

Is Avenue Supermarts Ltd. worth buying?

1667 Votes:

Buy 67.67%

Sell 16.74%

Hold 15.6%

RESEARCH REPORTS

Buy SEE REPORTS >

pdf

Hold SEE REPORTS >

pdf