ICICI Direct has given Hold recommendation for Avenue Supermarts with a target price of Rs. 5260 in its research report issued on Jan 10, 2022

ICICI Direct’s research report on Avenue Supermarts

Avenue Supermarts (ASL) operates supermarket chain under ‘DMart’ brand with a core focus on value retailing. D-Mart, through its proven business model, has been able to maintain consistent profitability and remains an exceptional performer in its peer group. D-Mart has progressively enhanced its return ratios (RoIC: 20%+) despite being capital intensive (follows ownership model) • Robust store operating metrics (breakeven in 18-24 months of its operations and one of industry best revenue/sq ft: Rs 32000+).

Outlook

We maintain HOLD rating on the stock with a revised target price. We value ASL at Rs 5260 i.e. 6.2x FY24E EV/sales.

More Info on Trent

At 16:00 hrs Avenue Supermarts was quoting at Rs 4,633.05, down Rs 97.80, or 2.07 percent.

It has touched an intraday high of Rs 4,798.90 and an intraday low of Rs 4,620.00.

It was trading with volumes of 37,235 shares, compared to its thirty day average of 27,064 shares, an increase of 37.58 percent.

In the previous trading session, the share closed up 0.54 percent or Rs 25.55 at Rs 4,730.85.

The share touched its 52-week high Rs 5,899.90 and 52-week low Rs 2,610.80 on 18 October, 2021 and 29 January, 2021, respectively.

Currently, it is trading 21.47 percent below its 52-week high and 77.46 percent above its 52-week low.

Market capitalisation stands at Rs 300,117.25 crore.

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