Avenue Supermarts Ltd. (DMart) Share Price Analysis – May 2025
📊 Current Stock Overview
- Current Price (as of May 5, 2025): ₹3,797.10
- Market Capitalization: ₹2.47 trillion
- P/E Ratio (TTM): 97.43
- EPS (TTM): ₹38.97
- 52-Week Range: ₹3,340 – ₹5,484.85
- Dividend Yield: 0%
- ROE: 14.62%
- ROCE: 20.29%
- EBITDA Margin (TTM): 8.06% Business Today+11ET Money+11StockAnalysis+11INDmoney+2StockAnalysis+2ET Money+2INDmoneyBusiness Today+11Trendlyne.com+11StockAnalysis+11
📈 Financial Performance – Q4 FY25
Q1 FY25 Highlights:
- Net Profit: ₹773.7 crore (up 17.5% YoY)
- Revenue: ₹14,069.1 crore (up nearly 19% YoY)
- Sales per Store Growth: 4.7% YoY
- Sales per Square Foot Growth: 4.4% YoY
- New Stores Opened: 6, each 50% larger YoY
Q2 FY25 Highlights:
- Standalone Net Profit: ₹620 crore (up 2.6% YoY)
- PAT Margin: 4.3% (down from 4.9% in Q4 FY24)
- Revenue Growth: Approximately 17% YoY mint+3ET Now+3INDmoney+3mint+1mint+1
- Net Profit: ₹659.6 crore (up 5.8% YoY)
- Revenue: ₹14,444.5 crore (up 14.4% YoY)
🧠 Analyst Insights
- Average Target Price: ₹4,077.76, suggesting a potential upside of 13.47% from the current price
- Analyst Ratings: 41.38% “Buy”, 31.03% “Hold”, 27.59% “Sell” INDmoney
📉 Recent Market Trends
- Stock Performance: The stock has declined approximately 30% from its 52-week high, reflecting market corrections and valuation concerns
- Technical Indicators: Currently exhibiting a bearish trend, with a P/E ratio higher than the industry median Trendlyne.com
🛍️ Expansion & Market Presence
- Total Stores: 415 across 12 states and union territories as of March 2025
- Expansion Plans: Approximately 45 new stores planned for FY25, focusing on Tier-2 and Tier-3 cities
📉 Valuation & Analyst Ratings
- Average Target Price: ₹4,077.76, suggesting a potential upside of 13.47% from the current price
- Analyst Ratings:
- Buy: 41.38%
- Hold: 31.03%
- Sell: 27.59%
⚠️ Risks & Challenges
- Competitive Pressure: Increased discounting on grocery baskets and competition in the fresh food segment in urban areas.
- Valuation Concerns: High P/E ratio compared to industry peers may limit short-term upside potential.
- Market Volatility: Stock has declined approximately 30% from its 52-week high, reflecting market corrections and valuation concerns
✅ Conclusion
Avenue Supermarts Ltd. (DMart) continues to demonstrate robust financial health, with consistent revenue growth and strong return ratios. However, the elevated valuation metrics and recent market corrections suggest a cautious approach for potential investors. While the long-term growth prospects remain positive, short-term market volatility and valuation concerns warrant careful consideration. Investors should assess their risk tolerance and investment horizon before making decisions regarding DMart shares.
