Mehabe score: 8 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Avenue Supermarts is primarily engaged in the business of organized retail and operates supermarkets under the brand name of D-Mart.(Source : 202003-01 Annual Report Page No:111) Site:DMART Main Symbol:DMART
Stock trades at 4731.0, above its 50dma 4669.67. It also trades above its 200dma 3983.74. The stock remains bullish on techicals
The 52 week high is at 5900.00 and the 52week low is at 2610.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 24.14 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 13.16% for last 3 years.
Competition
– The industry trades at a mean P/E of 244.2x. V-Mart Retail trades at the industry’s max P/E of 2099.48x. DMART trades at a P/E of 223.0x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 6.0. DMART has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 0.5%. The max 1- month return was given by Future Retail: a return of 7.81 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 9218.0 cr compared to Rs 7542.0 cr for period ended Dec 2020, a rise of 22.2% .
vis-vis 689.0 for period ended Dec 2020 .
Operating Margins expanded 25.9 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 866.0 cr for period ended Dec 2021 and operating profit margin at 9.4 % for same period.
The EPS for quarter ended Dec 2021 is Rs 8.53 compared to Rs 6.45 for previous quarter ended Sep 2021 and Rs 6.9 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 29602.0 cr for period ended TTM vis-vis sales of Rs 24143.0 cr for the period ended Mar 2021, a healthy growth of 18.4%. The 3 year sales cagr stood at 14.0%.
Operating margins expanded to 8.0% for period ended TTM vis-vis 7.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 1480.0 cr for period ended TTM vis-vis sales of Rs 1099.0 cr for the period ended Mar 2021, rising 25.7%.
Company recorded a healthy Net Profit CAGR of 17.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1375.0 cr for period ended Mar 2021 vis-vis Rs 1280.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 9.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 59% on a 1 Year basis vis-vis a return of 44% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 54% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 9.44% vis-vis 9.95% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 8.83% vis-vis 8.29% for Sep 2021
Conclusion
– is almost debt free. – Stock is trading at 24.14 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 13.16% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 4669.67 and is trading at 4731.0, thus bullish price action wise.
