NSEI:DMART

Stock Analysis Report

Executive Summary

Avenue Supermarts Limited engages in the business of organized retail and operates supermarkets under the brand name of D-Mart.


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has Avenue Supermarts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DMART's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.3%

DMART

-3.1%

IN Consumer Retailing

-0.7%

IN Market


1 Year Return

65.5%

DMART

62.0%

IN Consumer Retailing

10.0%

IN Market

Return vs Industry: DMART exceeded the Indian Consumer Retailing industry which returned 62% over the past year.

Return vs Market: DMART exceeded the Indian Market which returned 10% over the past year.


Shareholder returns

DMARTIndustryMarket
7 Day2.3%-3.1%-0.7%
30 Day28.6%27.7%-0.3%
90 Day34.0%32.7%3.2%
1 Year65.5%65.5%62.1%62.0%12.0%10.0%
3 Yearn/a-17.9%-18.3%23.9%17.1%
5 Yearn/a-39.7%-40.5%38.3%25.6%

Price Volatility Vs. Market

How volatile is Avenue Supermarts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Avenue Supermarts undervalued compared to its fair value and its price relative to the market?

125.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DMART (₹2462.65) is trading above our estimate of fair value (₹419.9)

Significantly Below Fair Value: DMART is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DMART is poor value based on its PE Ratio (125.9x) compared to the Consumer Retailing industry average (15.4x).

PE vs Market: DMART is poor value based on its PE Ratio (125.9x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: DMART is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: DMART is overvalued based on its PB Ratio (23x) compared to the IN Consumer Retailing industry average (1x).


Next Steps

Future Growth

How is Avenue Supermarts forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DMART's forecast earnings growth (23.8% per year) is above the savings rate (6.5%).

Earnings vs Market: DMART's earnings (23.8% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DMART's revenue (22% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: DMART's revenue (22% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DMART's Return on Equity is forecast to be high in 3 years time (22.9%)


Next Steps

Past Performance

How has Avenue Supermarts performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DMART has a high level of non-cash earnings.

Growing Profit Margin: DMART's current net profit margins (5.2%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: DMART's earnings have grown significantly by 27.5% per year over the past 5 years.

Accelerating Growth: DMART's earnings growth over the past year (39%) exceeds its 5-year average (27.5% per year).

Earnings vs Industry: DMART earnings growth over the past year (39%) exceeded the Consumer Retailing industry 9.9%.


Return on Equity

High ROE: DMART's Return on Equity (18.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Avenue Supermarts's financial position?


Financial Position Analysis

Short Term Liabilities: DMART's short term assets (₹22.1B) exceed its short term liabilities (₹13.9B).

Long Term Liabilities: DMART's short term assets (₹22.1B) exceed its long term liabilities (₹2.7B).


Debt to Equity History and Analysis

Debt Level: DMART's debt to equity ratio (9.8%) is considered satisfactory.

Reducing Debt: DMART's debt to equity ratio has reduced from 73.7% to 9.8% over the past 5 years.

Debt Coverage: DMART's debt is well covered by operating cash flow (229.4%).

Interest Coverage: DMART's interest payments on its debt are well covered by EBIT (40.9x coverage).


Balance Sheet

Inventory Level: DMART has a high level of physical assets or inventory.

Debt Coverage by Assets: DMART's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is Avenue Supermarts's current dividend yield, its reliability and sustainability?

0.069%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage1.8%forecastin3Years0.07%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate DMART's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DMART's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DMART's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DMART's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DMART's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average board tenure


CEO

Ignatius Noronha 0

₹45,517,836

Compensation

Mr. Ignatius Navil Noronha serves as the Managing Director and Chief Executive Officer of Avenue Supermarts Limited and has been its Director since January 2, 2006. 


CEO Compensation Analysis

Compensation vs Market: Ignatius's total compensation ($USD633.05K) is below average for companies of similar size in the Indian market ($USD1.13M).

Compensation vs Earnings: Ignatius's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Ignatius Noronha
CEO, MD & Director0yrs₹45.52m2.04% 32.5b
Ramakant Baheti
Group CFO & Whole-Time Director14.1yrs₹10.41m0.44% 7.0b
Elvin Machado
Director of Business Development & Whole-Time Director4.7yrs₹7.25m0.050% 792.2m
Chandrashekhar Bhave
Non Executive Independent Director3.8yrs₹2.63mno data
Manjri Chandak
Non-Executive Director8.9yrs₹620.00kno data
Ramesh Damani
Independent Chairman of the Board0yrs₹2.65m0.015% 246.2m
Kalpana Unadkat
Non Executive Independent Director1.6yrs₹1.64mno data

6.8yrs

Average Tenure

53yo

Average Age

Experienced Board: DMART's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DMART insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Avenue Supermarts Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avenue Supermarts Limited
  • Ticker: DMART
  • Exchange: NSEI
  • Founded: 2000
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: ₹1.595t
  • Shares outstanding: 647.77m
  • Website: https://www.dmartindia.com

Number of Employees


Location

  • Avenue Supermarts Limited
  • B - 72/72A
  • Wagle Industrial Estate
  • Mumbai
  • Maharashtra
  • 400604
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540376BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2017
DMARTNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2017

Biography

Avenue Supermarts Limited engages in the business of organized retail and operates supermarkets under the brand name of D-Mart. The company offers food products, including dairy products, staples, groceries, snacks, frozen products, processed foods, beverages and confectionery, and fruits and vegetables; non-food products comprising home care products, personal care, toiletries, and other over the counter products; and general merchandise and apparel products, such as bed and bath products, toys and games, crockery, plastic goods, garments, footwear, utensils, and home appliances. It is also involved in the online retail of food products and groceries. As of March 31, 2019, the company operated 176 stores located in Maharashtra, Gujarat, Karnataka, Telangana, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, NCR, Tamil Nadu, Punjab, Daman, and Rajasthan. The company was founded in 2000 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 13:11
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.