Find all the Brokerage and Analyst Reviews and Recommendations of the
Avenue Supermarts promoted D-Mart HyperMarket Retail Chain Review
ShareKhan has the following Review
At the price band of Rs295-299 per share, the issue is priced at 52.6x and 51.9x its FY2016 EPS, respectively – a discount to some of its peers despite much better profitability and return ratios. Its track record of industryl eading performance and a reputed pedigree make it a quality investment option in the retail space.
Dalal & Broacha Analyst Kunal Bhatia said,
Annualising 9MFY17 numbers Dmart's valuation stands at 36.1x its higher price band of Rs 299 and 35.6x its lower price band of Rs 295. The company would be raising Rs 18700mn of which Rs 10800 mn would be utilised for paying off debt (thus improving profitability) and Rs 3666mn towards further expansion. We expect the company to maintain similar of CAGR going forward. We recommend investors to SUBSCRIBE the issue.
Arihant Capital Markets said,
Avenues Supermarts Ltd (ASL) which runs D'mart brand of Hybrid Supermarts in 9 states is the most profitable value retailer in India. ASL has consciously followed a strategy of 1) owning real estate in stores (7-7.5% of sales savings) 2) cluster based strategy focusing on a few states (Maharashtra and Gujarat are 82% of sales) 3) avoiding own labels in Food and Non Food FMCG 4) Everyday low prices and Everyday low costs which has enabled the company to achieve 14xinventory turns and ROE and ROCE of ~24%. D'mart is looking at calibrated store openings while retaining its focus on select geographies which should enable healthy growth in profitability. The stock is being offered at 35x9mFY17 EPS which we believe is reasonable given strong growth outlook, solid business model and healthy return ratios. Recommend Subscribe.
Emkay Analysts Sameer Kasbekar and Amit Purohit said,
Given its growth momentum, gross/EBITDA margin profile, return ratios and inventory turns, ASL dwarfs most of its listed peers both domestic and international. We believe that the robust business model and focus on low costs will enable the company to report not only a strong profitable growth but also turn free cash positive in the near future. We assign a SUBSCRIBE rating to the IPO.
SMC has the following Review and Recommendation,
On the lower end of the price band of Rs.295 the stock is priced at pre issue P/E of 31.62x on its FY17 EPS of Rs. 9.33.Post issue, the stock is priced at a P/E of 35.14x on its EPS of Rs. 8.39. Looking at the P/B ratio at Rs. 295, the stock is priced at P/B ratio of 8.69x on the pre issue book value of Rs. 33.93 and on the post issue book value of Rs. 62.59 , the P/B comes out to 4.71x.
Prabhudas Liladhar Analysts Amnish Aggarwal and Gaurav Jogani said,
Everyday low prices and Everyday low costs which has enabled the company to achieve 14xinventory turns and ROE and ROCE of ~24%. D’mart is looking at calibrated store openings while retaining its focus on select geographies which should enable healthy growth in profitability. The stock is being offered at 35x9mFY17 EPS which we believe is reasonable given strong growth outlook, solid business model and healthy return ratios. Recommend Subscribe.
IndiaNivesh Analysts Saptarshi Mukherjee, Daljeet S. Kohli and Sriram said,
Based on the stupendous track record of the company displayed by steady footprint expansion using a distinct store acquisition strategy and ownership model backed by optimal product assortment coupled with strong promoter background, experienced and entrepreneurial management team, we recommend investors to SUBSCRIBE to the issue.
Angel Broking Analyst Amarjeet S Maurya said,
At the upper end of the price band, the pre-issue P/E works out to be 32.5x its annualised 9MFY2017 earnings, which is lower
compared to P/E multiple of its peers i.e. Trent - 73.9x, Shoppers Stop – 123.8x and Future Retail 36.5x. Better RoE profile, promoter’s strong background, strategically located stores, intense focus on maintaining lower costs and strong brand perception are the compelling factors indicating that ASL is a long term story that will unfold going ahead. Thus, we recommend a SUBSCRIBE on this issue.
