Avenue Supermarts Ltd. (DMART) AI Stock Analysis

• Market Cap: ₹2.48T
• Dividend Yield: N/A
• Average Volume (3M): 17.37K
• Price to Earnings (P/E): 86.4
• Beta (1Y): 0.95
• Revenue Growth: 16.54%
• EPS Growth: 1.69%
• Country: IN
• Employees: 13,971
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 12.70
• Shares Outstanding: 650,733,100
• 10 Day Avg. Volume: 30,778
• 30 Day Avg. Volume: 17,368
• PEG Ratio: 14.36
• Price to Book (P/B): 12.19
• Price to Sales (P/S): 4.40
• P/FCF Ratio: -272.11
• 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: ₹4,690.63
• Price Target Upside: 22.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹3,811.00 ▼(-0.41% Downside)

The overall stock score is primarily impacted by the strong financial performance, particularly in revenue growth and profitability. However, bearish technical indicators and a high P/E ratio suggest caution. The lack of dividend yield and challenges in cash flow management further weigh on the stock's attractiveness.

Positive Factors

Low Leverage / Strong Balance Sheet

A very low debt-to-equity ratio and high equity base provide durable financial flexibility, lowering interest burden and bankruptcy risk. This supports conservative expansion and resilience through downturns, enabling management to prioritize organic growth without heavy refinancing needs.

Consistent Revenue Growth and Margins

Sustained double-digit top-line growth combined with steady gross and operating margins reflects a scalable retail model. Durable revenue momentum and margin stability underpin cash generation potential and reinvestment capacity, supporting continued store rollouts and long-term competitive positioning.

High-volume, Low-margin Model & Scale

A no-frills, high-volume model with private labels drives cost leadership and supplier negotiating power. Economies of scale lower per-unit costs and sustain competitive pricing, making the business model structurally advantaged in price-sensitive markets and supporting long-term market share gains.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow signals that reported profits are not fully converting to free cash, constraining internal funding for store expansion, working capital, or shareholder returns. Over months this can force reliance on external financing or slower organic growth.

Weak Cash Conversion

Operating cash conversion below parity implies earnings are not fully turning into operational cash. Structurally weaker cash conversion limits self-funded capex and increases sensitivity to lumpy investments, potentially slowing the pace of durable store network expansion.

Very High Equity Ratio May Limit Growth

An extremely equity-heavy capital structure reduces financial leverage use; while conservative, this can constrain the pace of capital-efficient expansion versus peers who deploy modest debt. Over time, underutilized leverage may slow market share capture and returns on invested capital.

Avenue Supermarts Ltd. Business Overview & Revenue Model

Company Description

Avenue Supermarts Limited engages in the business of organized retail and operates supermarkets under the D-Mart brand name. It offers food products, including groceries, staples, processed foods, dairy and frozen products, beverages and confectionery products, and fruits and vegetables; non-food products comprising home care and personal care products, toiletries, and other over the counter products; and general merchandise and apparel products, such as bed and bath products, toys and games, crockery, plastic goods, garments, footwear, utensils, and home appliances. The company is also involved in the online and multi-channel retail of grocery and household products under the DMart Ready brand name. It operates through a network of 284 stores located in Maharashtra, Gujarat, Telangana, Karnataka, Andhra Pradesh, Madhya Pradesh, Tamil Nadu, Rajasthan, Chhattisgarh, Punjab, Daman, and NCR. Avenue Supermarts Limited was incorporated in 2000 and is based in Mumbai, India.

How the Company Makes Money

Avenue Supermarts Ltd. generates revenue primarily through the sale of consumer goods in its hypermarkets. The company's revenue model is based on a high-volume, low-margin strategy, where it aims to sell a large quantity of products at competitive prices, thus attracting a broad customer base. Key revenue streams include grocery sales, non-food items, and private label products, which often have higher margins compared to branded goods. Additionally, DMART benefits from economies of scale, allowing it to negotiate better prices with suppliers. The company also engages in strategic partnerships for logistics and supply chain management, enhancing its operational efficiency and cost-effectiveness. Furthermore, DMART's focus on a no-frills shopping experience helps keep operational costs low, contributing to 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	638.80B	593.58B	507.89B	428.40B	309.76B	241.43B
Gross Profit	92.53B	85.83B	73.30B	63.14B	44.80B	35.05B
EBITDA	44.95B	42.64B	39.15B	34.66B	23.63B	16.38B
Net Income	27.33B	27.08B	25.36B	23.79B	14.93B	10.99B
Balance Sheet
Total Assets	269.14B	243.20B	211.77B	181.06B	154.73B	136.56B
Cash, Cash Equivalents and Short-Term Investments	2.10B	3.59B	16.79B	16.10B	3.04B	14.48B
Total Debt	16.09B	8.20B	5.92B	6.43B	6.47B	3.93B
Total Liabilities	40.26B	28.94B	24.80B	20.28B	17.95B	14.72B
Stockholders Equity	228.90B	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	26.30B	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: Neutral
• Last Price: 3826.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 3826.8 is above the 20-day moving average (MA) of 3783.63, below the 50-day MA of 3919.50, and below the 200-day MA of 4187.08, indicating a neutral trend. The MACD of -48.57 indicates Negative momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	₹4.22T	12.04	―	3.52%	4.55%	70.17%
DODLA	65 Neutral	₹73.14B	28.13	―	0.40%	11.41%	18.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹41.37B	23.94	―	0.54%	9.83%	-0.92%
GODFRYPHLP	61 Neutral	₹324.40B	25.82	―	1.29%	24.53%	39.08%
HATSUN	61 Neutral	₹208.56B	63.45	―	0.61%	10.61%	7.97%
DMART	58 Neutral	₹2.48T	86.43	―	―	16.54%	1.69%

Avenue Supermarts Ltd. Corporate Events

Avenue Supermarts Expands with New Store in Surat

Avenue Supermarts Ltd. has announced the opening of a new store in Vesu, Surat, Gujarat, bringing its total number of stores to 442. This expansion reflects the company’s ongoing growth strategy and strengthens its presence in the Indian retail market, potentially enhancing its competitive positioning and offering more convenience to local consumers.

Avenue Supermarts Releases Q2 2025 Financial Results

Avenue Supermarts Ltd. has published its standalone and consolidated unaudited financial results for the quarter ending September 30, 2025. The results were disclosed in major newspapers, including the Economic Times and Maharashtra Times, as per SEBI regulations. This announcement is significant for stakeholders as it provides insights into the company’s financial health and performance, potentially impacting investor confidence and market positioning.

Avenue Supermarts Reports Strong Revenue Growth in Q2 FY26

Avenue Supermarts Ltd. reported a 15.4% year-on-year increase in standalone total revenue, reaching Rs.16,219 crore for the quarter ending September 30, 2025. The company’s net profit also saw a 5.1% rise, amounting to Rs.747 crore. Despite a slight decrease in EBITDA and PAT margins, the company expanded its operations by adding eight new stores during the quarter. The financial results indicate a steady growth trajectory for ASL, reflecting its strong market position and continued expansion efforts, which are likely to positively impact stakeholders.

Avenue Supermarts Ltd. Reports Revenue Growth and Store Expansion in Q2FY26

Avenue Supermarts Ltd. reported a 15.4% year-over-year increase in standalone total revenue, reaching Rs.16,219 crore for the quarter ending September 30, 2025. The company’s net profit also saw a rise of 5.1%, amounting to Rs.747 crore. Despite the growth in revenue and profit, the EBITDA margin slightly decreased to 7.6% from 7.9% in the previous year. The company expanded its operations by adding eight new stores during the quarter, contributing to a total of 17 new stores in the first half of the fiscal year. This expansion and financial growth reflect ASL’s continued efforts to strengthen its market position and enhance shareholder value.

Avenue Supermarts Releases H1 FY 2026 Investor Presentation

Avenue Supermarts Ltd. has released its investor presentation for the quarter and half-year ending September 30, 2025. This presentation provides insights into the company’s financial performance and strategic initiatives, which are crucial for stakeholders to understand its market positioning and operational strategies.

Avenue Supermarts Submits SEBI Compliance Certificate for Q3 2025

Avenue Supermarts Limited has submitted a compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. This certificate, provided by their Registrar and Share Transfer Agent, MUFG Intime India Private Limited, confirms that there were no requests for dematerialization or rematerialisation of securities during the specified period, indicating stable shareholder activity.