DMART

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Avenue Supermarts Ltd. (currently trading at ₹4334) operates DMart, India’s second-largest organized grocery and general merchandise retail chain. Known for its value-driven model, DMart offers food, FMCG, apparel, and home utility products through a network of 426 stores across India. The company maintains a lean cost structure, high inventory turnover, and strong cash flow generation, making it one of the most efficient retailers in the country.

Avenue Supermarts Ltd. – FY21–FY25 Snapshot
Sales – ₹24,143 Cr → ₹30,850 Cr → ₹41,833 Cr → ₹50,790 Cr → ₹59,358 Cr Strong multi-year growth driven by store expansion and higher footfalls
Net Profit – ₹1,099 Cr → ₹1,650 Cr → ₹2,378 Cr → ₹2,520 Cr → ₹2,707 Cr Margin stability despite competitive pressures and input cost volatility
Operating Performance – Strong → Strong → Strong → Strong → Strong Consistent execution across offline and online formats
Dividend Yield (%) – 0.00% → 0.00% → 0.00% → 0.00% → 0.00% No payouts; reinvestment-focused strategy
Equity Capital – ₹648.73 Cr (constant) No dilution; promoter group retains majority stake
Total Debt – ₹0 Cr (debt-free) Fully equity-financed operations
Fixed Assets – ₹9,850 Cr → ₹11,200 Cr → ₹12,650 Cr → ₹13,980 Cr → ₹15,320 Cr Capex focused on store additions and DMart Ready infrastructure

Institutional Interest & Ownership Trends
Promoter holding stands at 74.65%, led by Radhakishan Damani and family. FIIs and DIIs maintain strong exposure due to DMart’s execution strength and consumption linkage. Delivery volumes reflect long-term accumulation by retail-focused funds and institutional investors.

Business Growth Verdict
Avenue Supermarts continues to scale efficiently across geographies Margins remain stable despite competitive intensity Debt-free structure enhances financial flexibility Capex supports long-term store expansion and digital enablement

Management Con Call
Management confirmed 50 new store additions in FY25, with a strategic push into northern India, especially Uttar Pradesh. DMart Ready continues to expand, now present in 25 cities, with a focus on 3–6 hour delivery windows rather than quick commerce. Private-label expansion into branded categories (biscuits, soaps, detergents) is underway to protect margins. FY26 outlook includes mid-teen revenue growth and continued store rollout, with margin pressures expected to ease as service-level investments normalize.

Final Investment Verdict
Avenue Supermarts Ltd. IS a debt-free model, strong promoter backing, and scalable offline-plus-online strategy make it suitable for accumulation by investors seeking exposure to India’s consumption and retail infrastructure. With improving store economics and digital traction, DMart remains a long-term value creator.

Penafian

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