Moneycontrol Be a Pro
Get App
Last Updated : Jul 15, 2019 03:03 PM IST | Source: Moneycontrol.com

Hold Avenue Supermarts; target of Rs 1338: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Avenue Supermarts with a target price of Rs 1338 in its research report dated July 14, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Avenue Supermarts


D'Mart has sustained strong sales momentum led by Everyday low price model, strong value proposition and clusters based strategy. D'Mart has added 8 stores in 1Q20, however large part of store openings are a spillover of FY19. Though 1Q20 gross margins were higher, we believe it will normalize in the coming quarters. It continues to maintain its growth strategy of gradual acceleration in store openings (added 21 stores in FY17, 24 in FY18 and 21 in FY19) and strong throughput in stores. We believe benefits of higher store openings in 1Q boosted sales while 40bps margin expansion was led by operating leverage. We estimate 37.4% PAT CAGR over FY19-21.


Outlook


However, valuations at 49.8xFY21 EPS factor in the expected growth. Maintain Hold with a target price of Rs1338 although absolute returns might be back ended due to estimated fresh supply of ~Rs62bn in QIP and OFS by March2020.


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Close


The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jul 15, 2019 03:03 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant