Avenue Supermarts pips Nestle to become 18th most valued firm; m-cap tops Rs 1.50 lakh crore - The Economic Times
11-Feb-2020 03:43:12 AM
NEW DELHI: The market capitalisation of Avenue Supermarts crossed the Rs 1.50 lakh crore mark on Monday amid ongoing bullish momentum. Shares of the company have jumped nearly 16 per cent to Rs 2, 484 in the past 10 sessions till February 10.
The company had listed on the bourses on March 21, 2017. Since its listing, shares of the company have zoomed over 280 per cent.Owner of DMart supermarket chain pipped Nestle India to become the 18th most valued company by market capitalisation.
At close of trade on Monday, the market capitalisation (m-cap) of Avenue Supermarts stood at Rs 1, 55, 948.65 crore on BSE, which was Rs 61.79 crore more than that of Nestle's Rs 1, 55, 886.
86 crore valuation.In the recent developments, the company on February 5 launched a qualified institutional placement (QIP) to raise up to Rs 4, 000 crore.For the quarter ended December 31, Avenue Supermarts had reported a 53.
3 per cent year-on-year rise in standalone profit at Rs 394 crore compared with Rs 257 crore last year.Revenue for the quarter grew 23.90 per cent to Rs 6, 752 crore compared with Rs 5, 451 crore reported in the year-ago period.
The company is the most profitable grocery retailer in India, offering low prices to customers through its 196 stores (7m sq ft). Its relentless focus on providing the lowest market prices has helped DMart drive industry-leading sales per sq ft (2-4x peers) and around 25 per cent RoCE.IIFL Securities in its report on January 29 gave 'add' rating to Avenue Supermarts with a five-year target price of Rs 3, 950.
"We expect 27 per cent and 35 per cent sales and EPS CAGR over FY19-22, as DMart benefits from its presence in largely unorganised market and investments in increasing the store-addition pace, " the brokerage house said.