Motilal Oswal recommended neutral rating on Avenue Supermarts with a target price of Rs 2000 in its research report dated August 05, 2020.
Motilal Oswal 's research report on Avenue Supermarts
DMart hosted its annual analyst call, discussing in detail the current business environment, growth opportunity, online strategy, and means to combat the resurgence of strong online players. DMart re-emphasized its uniqueness in terms of right pricing and assortment. Furthermore, it highlighted creating a certain positioning and customer affinity that is ensuring swift recovery from the pandemic-led lockdown. Here are the key takeaways:
Thus, we value DMart at a 35% discount to the three-year average EV/EBITDA multiple of 65x, implying 7% downside. We upgrade from SELL to NEUTRAL.
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