ICICI Direct's research report on Avenue Supermarts
Avenue Supermarts (ASL) operates supermarket chain under the ‘D-Mart’ brand with 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 30000+).
We maintain HOLD recommendation on the stock. We value ASL at Rs 4000 i.e. 4x FY25E EV/Sales.