Avenue Supermarts Ltd. (DMART) AI Stock Analysis

• Market Cap: ₹2.40T
• Dividend Yield: N/A
• Average Volume (3M): 17.37K
• Price to Earnings (P/E): 83.8
• Beta (1Y): 0.96
• Revenue Growth: 16.54%
• EPS Growth: 1.69%
• Country: IN
• Employees: 13,971
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 13.21
• 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: ₹4,416.67
• Price Target Upside: 15.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹3,835.00 ▲(0.21% Upside)

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

Strong Revenue Growth

Sustained ~17% revenue growth indicates continued market share gains in India’s value retail segment. Over 2–6 months this underpins scale benefits: stronger supplier terms, better SKU economics, and capacity to fund new store openings and logistics investments without relying solely on short-term demand swings.

Low Financial Leverage

Extremely low leverage and high equity ratio provide resilience through economic cycles and reduce refinancing risk. This financial conservatism supports steady capital allocation for expansion or working capital needs, preserving strategic optionality and lowering bankruptcy risk over the medium term.

Efficient Retail Economics

Healthy gross and operating margins reflect a low-frills, high-turnover model with scale purchasing and tight cost control. These structural advantages support durable profitability in price-sensitive markets and provide a buffer to fund investments in supply chain and store growth without eroding core economics.

Negative Factors

Negative Free Cash Flow

Persistent negative FCF signals capex or working capital intensity that can strain liquidity and limit ability to self-fund expansion or shareholder returns. Over months this may force higher external financing, reducing optionality and potentially increasing financing costs if investment continues at current pace.

High Equity Ratio May Hinder Faster Growth

A very conservative capital structure suggests limited use of leverage to accelerate store rollouts. While reducing risk, it can slow expansion versus peers that deploy more debt, potentially ceding faster geographic penetration or share gains in a large, under‑penetrated market over the medium term.

Modest Net Profit Margin

A sub‑5% net margin implies retail cost pressures or SG&A absorption that limit cash generation. In a competitive, price-sensitive FMCG market, sustaining or improving net margins requires continual operational tightening; failure to do so would cap returns and reinvestment capacity over the coming months.

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: Negative
• Last Price: 3826.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DMART, the sentiment is Negative. The current price of 3826.8 is above the 20-day moving average (MA) of 3736.53, above the 50-day MA of 3816.21, and below the 200-day MA of 4163.26, indicating a bearish trend. The MACD of -41.55 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 38.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹4.04T	11.51	―	3.52%	4.55%	70.17%
DODLA	65 Neutral	₹71.48B	26.95	―	0.40%	11.41%	18.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GODFRYPHLP	61 Neutral	₹317.42B	24.72	―	1.29%	24.53%	39.08%
HATSUN	61 Neutral	₹195.61B	56.16	―	0.61%	10.61%	7.97%
DMART	58 Neutral	₹2.40T	83.77	―	―	16.54%	1.69%
HERITGFOOD	58 Neutral	₹33.33B	20.27	―	0.54%	9.83%	-0.92%

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.