Avenue Supermarts (D-Mart): What should investors do, post the stellar run-up?
D-Mart posted strong results for Q2FY22. With a steep reduction in COVID-19 cases, store operations have normalised, and the company is on track to resume strong earnings growth trajectory
October 18, 2021 / 10:20 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Avenue Supermarts (D-Mart; CMP: Rs 5,330; Market cap: Rs 345,241 crore) has posted strong results for Q2FY22. With a steep reduction in COVID-19 cases, D-Mart’s store operations have normalised, and the company is on track to resume its strong earnings growth trajectory.
The stock has had a stellar run up since our recommendation in July 2021, gaining 58 per cent against the benchmark Nifty gain of 17 per cent.
D-Mart has a strong and efficient business model and is among the few...