Avenue Supermarts Ltd logo

Avenue Supermarts Ltd

DMART NSE

Avenue Supermarts Limited (DMart) is a national supermarket chain, with a focus on value-retailing. We offer a wide range of products with a focus on the Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories.[1]

AI Verdict: HOLD Confidence: 5%

Avenue Supermarts trades at a PE of 94.6x with compounded profit growth slowing to 10% TTM from 22% over 5 years, making the valuation difficult to justify at current levels. While the business model remains strong with 23% sales CAGR over 10 years, the stock has delivered only 4-5% CAGR over 3-5 years, suggesting the market has already priced in the growth story.

Key Fundamentals

LargecapDiversified RetailRetail
Market Cap
2.8L Cr
Volatility
Moderate
P/E Ratio
94.12
EBITDA
₹5,187 Cr
Return on Equity
13.56%
Debt to Equity
0.04
Book Value
₹375.08
EPS
₹40.74
52W High
₹4,949.5
52W Low
₹3,529

Technical Indicators

Key Insights

Strengths

1
  • Company's median sales growth is 25.3% of last 10 years

Weaknesses

3
  • Stock is trading at 11.6 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Company has a low return on equity of 13.6% over last 3 years.

Growth Rate

Revenue Growth
15.70% ↗
Net Income Growth
10.07% ↗
Cash Flow Change
-10.30% ↘
ROE
-6.78% ↗
ROCE
-7.64% ↗
EBITDA Margin (Avg.)
-2.84% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk high

Avenue Supermarts trades at a PE of 94.6x with compounded profit growth slowing to 10% TTM from 22% over 5 years, making the valuation difficult to justify at current levels. While the business model remains strong with 23% sales CAGR over 10 years, the stock has delivered only 4-5% CAGR over 3-5 years, suggesting the market has already priced in the growth story.

Bull Case 7
  • Exceptional 10-year compounded sales growth of 23% CAGR demonstrates a proven and scalable retail business model
  • TTM sales growth of 16% shows continued momentum in revenue generation even on a larger base
  • Median sales growth of 25.3% over last 10 years is among the highest in Indian retail sector
  • Consistent ROE of 14% maintained over 3, 5, and 10-year periods shows stable return generation without leverage
  • Market cap of Rs 2,80,791 Cr reflects institutional confidence and liquidity for large investors
  • Debt-free balance sheet provides financial flexibility for aggressive store expansion without dilution risk
  • 32.26% of analysts recommend Buy, with total Buy ratings at 10 out of 31, indicating selective institutional support
Bear Case 8
  • PE ratio of 94.6x is extremely elevated, pricing in decades of perfect execution with no margin of safety
  • Price-to-book of 11.48x means investors pay Rs 11.4 for every Rs 1 of book value, leaving significant downside risk
  • Compounded profit growth has decelerated sharply from 22% (5-year) to just 10% TTM, signaling margin pressure
  • ROE has declined to 13% last year from a 14% average, indicating diminishing capital efficiency as the business scales
  • Zero dividend yield means shareholders rely entirely on capital appreciation, which has been only 4% CAGR over 3 years
  • Stock CAGR of just 5% over 5 years and 0% over 1 year shows the market is not rewarding the growth anymore
  • 29.03% of analysts rate it a Sell and 38.71% rate it Hold, meaning nearly 68% do not recommend buying at current levels
  • 3-year compounded profit growth of only 8% versus 17% sales growth suggests operating leverage is weakening

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 2
  • PAT margin compression in FY26 Jun 8

    PAT margin declined to 4.3% in FY26 from 4.6% in FY25 despite revenue growth, indicating cost pressures on profitability.

  • DMart Ready shrinks city footprint Jun 8

    Avenue E-Commerce (DMart Ready) reduced operations from 25 cities to 18 cities in FY26, signaling a pullback in e-commerce expansion.

Positives 4
  • 501st store opened at Gift City Jun 21

    Avenue Supermarts opened its 501st store in Gift City, Gandhinagar, continuing its physical retail expansion.

  • Strong FY26 revenue growth to ₹66,968cr Jun 8

    Consolidated revenue grew 15.9% YoY to ₹66,968 crore in FY26 from ₹57,790 crore in FY25, with net profit rising 9.7% to ₹2,970 crore.

  • DMart Ready revenue up 17% YoY Jun 8

    Avenue E-Commerce revenue grew to ₹4,093.61 crore in FY26 from ₹3,502.42 crore in FY25, despite operating in fewer cities.

  • ₹150cr invested in e-commerce subsidiary Jun 8

    Avenue Supermarts invested ₹150 crore in Avenue E-Commerce Ltd for working capital and capex, increasing stake marginally to 99.79%.

Neutral 2
  • ₹300cr commercial paper issued at 7.18% Jun 9

    Avenue Supermarts allotted ₹300 crore unsecured commercial paper at 7.18% interest, maturing September 7, 2026.

  • Promoter group member reclassification Jun 22

    Vijay Shankar Chandak seeks reclassification from Promoter Group to Public category; holds just 7,100 shares (0.001% stake), immaterial to ownership structure.

TL;DR: Avenue Supermarts is executing well on physical store expansion (crossing 501 stores) and delivering solid double-digit revenue growth. The e-commerce arm DMart Ready is growing revenues efficiently with fewer cities, though slight PAT margin compression warrants monitoring. The stock is up 8.7% YTD in 2026, and continued store additions plus disciplined capital allocation suggest a steady growth trajectory ahead.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
10,594
11,865
12,624
13,572
12,727
14,069
14,444
15,973
14,872
16,360
16,676
18,101
17,684
Expenses
9,823
10,830
11,619
12,453
11,783
12,848
13,351
14,755
13,917
15,061
15,463
16,638
16,473
Operating Profit
772
1,035
1,005
1,120
944
1,221
1,094
1,217
955
1,299
1,214
1,463
1,211
OPM %
7%
9%
8%
8%
7%
9%
8%
8%
6%
8%
7%
8%
7%
Other Income
33
39
37
33
38
42
34
24
25
19
20
17
18
Interest
16
15
16
15
13
16
16
18
19
29
35
37
41
Depreciation
164
162
174
189
205
193
208
228
241
232
253
268
284
PBT
625
897
852
949
763
1,054
903
995
720
1,057
945
1,175
904
Tax %
26%
27%
27%
27%
26%
27%
27%
27%
24%
27%
28%
27%
27%
Net Profit
460
659
623
690
563
774
659
724
551
773
685
856
656
EPS in Rs
7.1
10.12
9.58
10.61
8.66
11.89
10.14
11.12
8.47
11.88
10.53
13.15
10.07
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
6,439
8,584
11,898
15,033
20,005
24,870
24,143
30,976
42,840
50,789
59,358
68,821
Expenses
5,983
7,919
10,929
13,680
18,371
22,742
22,398
28,474
39,201
46,683
54,864
63,634
Operating Profit
456
664
969
1,353
1,633
2,128
1,745
2,502
3,639
4,106
4,495
5,187
OPM %
7%
8%
8%
9%
8%
9%
7%
8%
8%
8%
8%
8%
Other Income
20
17
28
88
48
60
194
114
128
145
117
74
Interest
72
91
122
60
47
69
42
54
67
58
69
142
Depreciation
82
98
128
159
212
374
414
498
639
731
870
1,037
PBT
323
492
747
1,222
1,422
1,745
1,483
2,064
3,060
3,461
3,673
4,082
Tax %
34%
35%
36%
34%
37%
25%
26%
28%
22%
27%
26%
27%
Net Profit
212
320
479
806
902
1,301
1,099
1,492
2,378
2,536
2,707
2,970
EPS in Rs
3.77
5.7
7.67
12.92
14.46
20.09
16.97
23.04
36.69
38.97
41.61
45.56
Div. Payout %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
562
562
624
624
624
648
648
648
648
651
651
652
Reserves
638
959
3,218
4,045
4,963
10,432
11,536
13,030
15,430
18,047
20,777
23,812
Borrowings
904
1,192
1,497
439
700
333
393
647
643
592
820
2,425
Other Liabilities
251
389
480
540
718
663
1,079
1,146
1,383
1,882
2,065
2,635
Total Liabilities
2,355
3,102
5,819
5,648
7,006
12,076
13,655
15,471
18,105
21,172
24,313
29,524
Fixed Assets
1,528
2,094
2,578
3,400
4,400
5,948
7,009
9,260
11,340
13,415
16,206
20,090
CWIP
98
82
153
147
377
364
1,020
1,129
829
935
1,099
1,300
Investments
15
29
26
68
17
15
3
6
202
107
3
4
Other Assets
713
897
3,063
2,033
2,212
5,749
5,624
5,076
5,733
6,716
7,004
8,130
Total Assets
2,355
3,102
5,819
5,648
7,006
12,076
13,655
15,471
18,105
21,172
24,313
29,524
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
222
433
455
730
807
1,280
1,375
1,372
2,630
2,746
2,463
3,467
Investing
-474
-633
-2,482
464
-958
-4,657
-1,110
-1,289
-2,313
-2,468
-2,185
-4,207
Financing
234
196
2,025
-1,159
209
3,357
-180
-179
-205
-148
-259
288
Net Cash Flow
-17
-3
-1
34
57
-19
86
-96
112
130
18
-452
Free Cash Flow
-255
435
-180
-179
-602
-426
-652
-1,017
424
24
-954
-646
CFO/OP
71
90
74
84
80
83
94
77
92
85
76
87
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
0
0
1
1
1
0
1
1
1
1
1
1
Inventory Days
36
34
34
34
35
34
40
38
33
33
36
37
Days Payable
8
10
9
9
10
8
10
8
8
8
8
8
Cash Conversion Cycle
28
24
26
25
26
26
30
31
26
26
30
29
Working Capital Days
22
6
4
16
11
22
23
23
20
25
23
18
ROCE %
21%
24%
21%
24%
26%
20%
13%
16%
20%
19%
18%
17%

Shareholding Pattern

As of Mar 2026
Promoters 74.51%
FIIs 9.00%
DIIs 8.85%
Public 6.41%
Others 1.23%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
74.99%
74.99%
74.99%
74.99%
74.99%
74.99%
74.99%
74.99%
74.93%
74.65%
74.65%
74.65%
74.65%
74.65%
74.65%
74.65%
74.65%
74.65%
74.65%
74.65%
74.51%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
8.26%
9.22%
9.95%
8.96%
8.18%
8.25%
8.73%
8.71%
9.00%
DIIs
6.47%
6.60%
6.68%
6.66%
6.72%
6.84%
6.86%
7.13%
7.53%
7.70%
7.93%
8.14%
8.59%
8.03%
7.49%
8.14%
9.15%
9.29%
9.09%
8.89%
8.85%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.02%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
7.80%
7.82%
7.83%
8.28%
8.72%
8.81%
5.90%
5.95%
6.15%
6.31%
6.27%
5.78%
5.43%
5.07%
4.89%
5.16%
4.94%
4.70%
4.37%
4.61%
6.41%
Others
10.74%
10.60%
10.51%
10.07%
9.57%
9.34%
12.25%
11.93%
11.39%
11.34%
11.15%
11.43%
3.08%
3.02%
3.02%
3.10%
3.08%
3.10%
3.16%
3.14%
1.23%
No. of Shareholders
0
3,06,995
3,45,515
4,03,133
5,94,561
7,42,493
7,93,537
7,47,199
8,35,850
8,13,245
8,15,562
7,40,037
6,84,326
6,19,843
5,90,252
7,09,582
6,71,850
6,18,996
5,85,510
5,99,296
5,73,764

Documents

Frequently Asked Questions about Avenue Supermarts Ltd

What does Avenue Supermarts Ltd do?
Avenue Supermarts Limited (DMart) is a national supermarket chain, with a focus on value-retailing. We offer a wide range of products with a focus on the Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories.[1]
Where is Avenue Supermarts Ltd (DMART) listed?
Avenue Supermarts Ltd is listed on the Indian stock exchanges. It is listed on NSE: DMART and BSE: 540376. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Avenue Supermarts Ltd belong to?
Avenue Supermarts Ltd operates in the Consumer Discretionary sector within the Retailing industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Avenue Supermarts Ltd?
Avenue Supermarts Ltd has a market capitalisation of approximately ₹283036.35 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Avenue Supermarts Ltd?
The Price-to-Earnings (PE) ratio of Avenue Supermarts Ltd is 94.12. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Avenue Supermarts Ltd?
Over the past 52 weeks, Avenue Supermarts Ltd has traded between a low of ₹3,529 and a high of ₹4,949.5. This range helps investors understand the stock's price volatility and recent trading levels.
What is the Return on Equity (ROE) of Avenue Supermarts Ltd?
Avenue Supermarts Ltd has a Return on Equity (ROE) of 13.56%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Avenue Supermarts Ltd on Tapetide?
On Tapetide, you can view Avenue Supermarts Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Avenue Supermarts Limited (DMart) is a national supermarket chain, with a focus on value-retailing. We offer a wide range of products with a focus on the Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories.[1]

Website dmartindia.com
Employees 16,959
Listed 2017-03-21
Face Value ₹ 10
Issued Size 65,07,33,068

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