Avenue Supermarts Ltd. (DMART) AI Stock Analysis

• Market Cap: ₹2.72T
• Dividend Yield: N/A
• Average Volume (3M): 17.37K
• Price to Earnings (P/E): 99.6
• Beta (1Y): 0.98
• Revenue Growth: 16.54%
• EPS Growth: 1.69%
• Country: IN
• Employees: 13,971
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 11.50
• 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: ₹4,528.13
• Price Target Upside: 13.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹4,474.00 ▲(11.97% 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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term competitiveness and market position.

Balance Sheet Health

Low leverage enhances financial stability, providing flexibility for future investments and reducing risk during economic downturns.

Profitability

Strong profitability margins reflect efficient operations and pricing strategies, supporting sustained business growth and shareholder value.

Negative Factors

Cash Flow Management

Negative free cash flow indicates potential issues in capital expenditure management, which could constrain future growth and investment capacity.

Capital Expenditure Challenges

Inefficient capital expenditure management can limit the company's ability to invest in growth opportunities, affecting long-term competitiveness.

Equity Ratio Impact

While a high equity ratio ensures stability, it may restrict leverage use for growth, potentially hindering expansion and market share gains.

Avenue Supermarts Ltd. Business Overview & Revenue Model

Company Description

Avenue Supermarts Ltd. operates the popular retail chain DMART, primarily in India. Established in 2002, the company specializes in the hypermarket sector, offering a wide range of products including groceries, household items, personal care products, apparel, and more. DMART focuses on providing quality products at competitive prices, catering to a diverse customer base. The company has expanded rapidly, establishing a significant presence across multiple states in India, with a commitment to customer satisfaction and operational efficiency.

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	616.49B	593.58B	507.89B	428.40B	309.76B	241.43B
Gross Profit	88.94B	85.83B	73.30B	63.14B	44.80B	35.05B
EBITDA	43.79B	42.64B	39.15B	34.66B	23.63B	16.38B
Net Income	27.07B	27.08B	25.36B	23.79B	14.93B	10.99B
Balance Sheet
Total Assets	0.00	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	0.00	8.20B	5.92B	6.43B	6.47B	3.93B
Total Liabilities	-214.27B	28.94B	24.80B	20.28B	17.95B	14.72B
Stockholders Equity	214.27B	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: 3995.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 3995.55 is below the 20-day moving average (MA) of 4051.07, below the 50-day MA of 4257.88, and below the 200-day MA of 4161.78, indicating a bearish trend. The MACD of -69.08 indicates Negative momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 33.83 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	₹5.12T	14.60	―	3.55%	4.55%	70.17%
DODLA	65 Neutral	₹77.40B	29.76	―	0.42%	11.41%	18.79%
GODFRYPHLP	65 Neutral	₹471.26B	37.51	―	1.28%	24.53%	39.08%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹44.88B	25.96	―	0.52%	9.83%	-0.92%
HATSUN	61 Neutral	₹236.66B	72.00	―	0.57%	10.61%	7.97%
DMART	58 Neutral	₹2.72T	99.59	―	―	16.54%	1.69%