Check Before You Invest : Avenue Supermarts Ltd

BSE: 540376 NSE: DMART ISIN: INE192R01011

| Sector: Retail | Industry: Retailing

Snapshot

Q.1 Which industry/sub-sector does Avenue Supermarts Ltd belong to?

Avenue Supermarts Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is Avenue Supermarts Ltd a good quality company?

Avenue Supermarts Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Avenue Supermarts Ltd undervalued or overvalued?

Avenue Supermarts Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Avenue Supermarts Ltd a good buy now?

Avenue Supermarts Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Avenue Supermarts Ltd?

Avenue Supermarts Ltd revenue growth is 16.7% for FY-2025, which is below its 5-year CAGR of 18.55%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Avenue Supermarts Ltd?

Avenue Supermarts Ltd Return on capital employed is 18.99% for FY-2025, which is in line with its 5-year historical median of 18.99%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Avenue Supermarts Ltd?

Avenue Supermarts Ltd Return on Asset is 12.6%, which is in line with its 5-year historical median of 12.6%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Avenue Supermarts Ltd?

Avenue Supermarts Ltd Return on equity is 14.14% for FY-2025, which is in line with its 5-year historical median of 14.14%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Avenue Supermarts Ltd?

Avenue Supermarts Ltd Cash conversion cycle is 20 days, in line with its 5-year historical median of 20 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	2.73	2.73
ROE	14.14	14.14
ROCE	18.99	18.99
Cash Conversion Cycle	20 days	20 days

Q.6 Gross Profit margin of Avenue Supermarts Ltd?

Avenue Supermarts Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.3% for FY-2025, which is below its 5-year median of 7.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of Avenue Supermarts Ltd?

Avenue Supermarts Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.86% for FY-2025, which is in line with its 5-year median of 8.25% indicating stable margins.

Q.8 Net Profit Margin of Avenue Supermarts Ltd?

Avenue Supermarts Ltd Net Profit Margin is 5.07% for FY-2025, is in line with with its 5-year median of 5.32%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.3	7.8
Operating Profit Margin	7.86	8.25
Net Profit Margin	5.07	5.32

Q.9 Debt to Equity ratio of Avenue Supermarts Ltd?

Avenue Supermarts Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.12, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Avenue Supermarts Ltd?

Avenue Supermarts Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Avenue Supermarts Ltd?

Promoters hold 74.51% of the Avenue Supermarts Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Avenue Supermarts Ltd vs industry peers?

Avenue Supermarts Ltd revenue CAGR is 18.55%, compared to the industry median CAGR of 28.93%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	16.7	28.9
Gross Profit Growth	9.8	30.5
Operating Profit Growth	10.8	26.9
Net Profit Growth	8.6	38

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.73	1.89
ROE	14.14	16.63
ROCE	18.99	25.74
Cash Conversion Cycle (days)	20.1	23

Valuation & price assessment

Q.1 Stock return of Avenue Supermarts Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 8.76% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	8.8%	6.8%	9.3%

Q.3 Valuation ratios of Avenue Supermarts Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	88.18	99.98	37.16
Price to Book	11.14	14.59	2.93
Price to Sales	4.25	5.76	1.30
EV to EBITDA	52.94	64.53	14.03

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