ICICI Direct has given Hold recommendation for Avenue Supermarts with a target price of Rs. 3720 in its research report issued on Jul 22, 2021

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 continue to remain structurally positive and maintain HOLD rating We value ASL at Rs 3720 i.e. 60x FY23E EV/EBITDA

 

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