Prabhudas Lilladher has given Buy recommendation for Avenue Supermarts with a target price of Rs. 3744 in its research report issued on Jul 22, 2021
Prabhudas Lilladher’s research report on Avenue Supermarts
We retain our positive stance on D’Mart post Annual Analyst Interaction given huge growth runway at 5.5x than existing stores and rising scale in D’Mart Ready. We believe that D’Mart model is maturing with significant operating leverage and capacity to cut costs, balance sheet strength to invest in real estate/build stores and sustained “Everyday low prices” in a highly consolidated but nascent modern trade in food and grocery.
We estimate 42.9% PAT CAGR over FY21-25 and retain BUY with a DCF based target price of Rs3744 (Rs3686 earlier).