Avenue Supermarts Ltd. (DMART) AI Stock Analysis

• Market Cap: ₹2.83T
• Dividend Yield: N/A
• Average Volume (3M): 25.13K
• Price to Earnings (P/E): 104.7
• Beta (1Y): 1.02
• Revenue Growth: 16.33%
• EPS Growth: 2.11%
• Country: IN
• Employees: 13,971
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Discount Stores
• EPS (TTM): 12.80
• Shares Outstanding: 650,733,100
• 10 Day Avg. Volume: 12,826
• 30 Day Avg. Volume: 25,134
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹4,348.54
• Price Target Upside: -0.12% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 63 Neutral
• Price Target: ₹4,564.00 ▲(4.83% Upside)

Avenue Supermarts Ltd. shows strong financial performance with robust revenue growth and low leverage, but faces challenges with cash flow management. The technical analysis presents mixed signals with some bearish momentum, while the high P/E ratio indicates potential overvaluation concerns. The stock is well-positioned in the discount stores industry, but needs to improve cash flow and manage valuation risks for better investor confidence.

Avenue Supermarts Ltd. Business Overview & Revenue Model

Company Description

Avenue Supermarts Ltd. (DMART) is a leading retail corporation in India, primarily engaged in the business of organized retailing. It operates a chain of hypermarkets and supermarkets under the brand name DMart, offering a wide range of products including groceries, home appliances, apparel, and general merchandise. The company is committed to delivering a diverse selection of quality products at competitive prices, catering to the needs of the value-conscious Indian consumer.

How the Company Makes Money

DMart generates revenue primarily through the sale of its wide array of products in its retail stores. The company's hypermarkets and supermarkets offer a variety of product categories such as food, personal care, home and kitchen appliances, clothing, and other general merchandise. DMart's revenue model is based on high inventory turnover and low pricing strategy, which attracts a large customer base. By maintaining efficient supply chain operations and leveraging economies of scale, DMart is able to keep operational costs low, thus maximizing its profit margins. Additionally, the company benefits from strategic partnerships with manufacturers and suppliers, ensuring a steady supply of goods at competitive prices, further enhancing its profitability.

Avenue Supermarts Ltd. Financial Statement Overview

Summary

Avenue Supermarts Ltd. exhibits strong revenue growth and stable profitability, supported by a robust balance sheet with low leverage. However, the cash flow position indicates challenges, particularly in capital expenditure management, which could impact future growth.

Income Statement

Avenue Supermarts Ltd. has shown robust revenue growth, with a strong Revenue Growth Rate of 16.88% in the latest period. The Gross Profit Margin is healthy at 14.83%, and the Net Profit Margin stands at 4.56%, indicating solid profitability. The EBIT Margin of 12.87% and EBITDA Margin of 7.56% reflect efficient operations. Overall, the company demonstrates strong growth and stable margins, though there is room for improvement in net profitability.

Balance Sheet

The company's balance sheet is strong, with a Debt-to-Equity Ratio of 0.04, indicating low leverage and prudent financial management. The Return on Equity (ROE) is impressive at 12.64%, reflecting effective use of equity to generate profits. An Equity Ratio of 88.12% suggests high financial stability. The balance sheet is robust, with minimal risks associated with debt, but maintaining such a high equity ratio could limit growth opportunities.

Cash Flow

Avenue Supermarts Ltd. faces challenges in cash flow management, with a significant negative Free Cash Flow. The Operating Cash Flow to Net Income Ratio is 0.91, indicating moderate efficiency in converting income to cash. The Free Cash Flow to Net Income Ratio is concerning at -0.35, highlighting potential issues in capital expenditure management. The cash flow position requires improvement to ensure long-term sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	593.58B	593.58B	507.89B	428.40B	308.85B	240.98B
Gross Profit	78.54B	88.06B	73.30B	64.56B	44.61B	35.17B
EBITDA	45.63B	44.87B	42.50B	37.66B	26.15B	19.39B
Net Income	27.08B	27.08B	25.36B	23.79B	14.93B	10.99B
Balance Sheet
Total Assets	243.20B	243.20B	211.77B	181.06B	154.73B	136.56B
Cash, Cash Equivalents and Short-Term Investments	3.59B	3.59B	16.79B	16.10B	3.04B	14.48B
Total Debt	8.20B	8.20B	5.92B	6.43B	6.47B	3.93B
Total Liabilities	28.94B	28.94B	24.80B	20.28B	17.95B	14.72B
Stockholders Equity	214.28B	214.28B	186.98B	160.79B	136.78B	121.84B
Cash Flow
Free Cash Flow	0.00	-9.60B	145.90M	5.47B	-10.38B	-6.54B
Operating Cash Flow	0.00	24.63B	27.46B	26.78B	13.72B	13.75B
Investing Cash Flow	0.00	-21.85B	-24.68B	-23.13B	-12.89B	-11.10B
Financing Cash Flow	0.00	-2.59B	-1.48B	-2.05B	-1.79B	-1.79B

Avenue Supermarts Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4353.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DMART, the sentiment is Positive. The current price of 4353.9 is above the 20-day moving average (MA) of 4156.56, above the 50-day MA of 4180.69, and above the 200-day MA of 3923.75, indicating a bullish trend. The MACD of 42.85 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 81.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DMART.

Avenue Supermarts Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITC	77 Outperform	₹5.15T	14.75		3.49%	10.55%	70.20%
DODLA	70 Outperform	₹78.77B	30.53		0.38%	18.72%	29.28%
GODFRYPHLP	67 Neutral	₹529.30B	44.12		77.36%	32.82%	39.97%
HATSUN	65 Neutral	₹195.75B	69.06		0.68%	8.52%	-10.77%
DMART	63 Neutral	₹2.83T	104.66		―	16.33%	2.11%
HERITGFOOD	61 Neutral	₹42.66B	25.03		0.54%	8.60%	14.95%
Sector *	50 Neutral	AU$2.10B	-1.45	-9.83%	4.37%	4.08%	-50.27%