Avenue Supermarts Ltd. (DMART) AI Stock Analysis

• Market Cap: ₹2.45T
• Dividend Yield: N/A
• Average Volume (3M): 17.37K
• Price to Earnings (P/E): 71.9
• 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: ₹4,300.00
• Price Target Upside: 12.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 47.46
• Revenue Forecast (FY): ₹676.87B

• Rating: 58 Neutral
• Price Target: ₹3,909.00 ▲(2.15% Upside)
• Action: Reiterated Date: 10/07/25
• Date: Action: Reiterated 10/07/25

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

Sustained ~17% revenue growth reflects durable demand for everyday essentials and successful store expansion. In value grocery retail, persistent top-line growth signals market share gains, recurring customer transactions and scale benefits that support long-term reinvestment and network density economics.

Balance Sheet Strength

Extremely low leverage and a high equity ratio provide resilience against macro stress and give the company financial flexibility to fund operations or opportunistic investment without near-term refinancing risk. This balance sheet conservatism supports durable solvency and credit strength.

Operational Efficiency & Margins

Healthy gross and operating margins indicate efficient store economics, scale purchasing and a limited-frills format that sustain profitability in low-margin retail. Reliable margin structure underpins cash generation potential from core merchandising activities over the medium term.

Negative Factors

Negative Free Cash Flow

Persistently negative free cash flow points to heavy capital spending (store openings, property ownership) outpacing operating cash conversion. Over months this can constrain reinvestment flexibility, require external funding, or force slower rollout versus plans, stressing strategic optionality.

Conservative Capital Structure May Limit Growth

An unusually high equity ratio suggests reliance on internal capital rather than leverage or lease financing. While conservative, this approach can slow the pace of network expansion in capital-intensive retail, reducing potential market share gains relative to more aggressively financed peers.

Modest Net Profit Margin

A sub-5% net margin provides a limited earnings buffer against cost inflation, supply shocks or price competition common in FMCG retail. Structural margin tightness means profitability is sensitive to operational disruptions and requires constant cost control to preserve long-term returns.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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 below the 20-day moving average (MA) of 3885.66, above the 50-day MA of 3803.97, and below the 200-day MA of 4133.94, indicating a bearish trend. The MACD of 8.54 indicates Positive momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 47.69 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	₹3.94T	25.57	―	3.52%	4.55%	70.17%
GODFRYPHLP	69 Neutral	₹318.78B	31.38	―	1.29%	24.53%	39.08%
DODLA	65 Neutral	₹68.00B	27.45	―	0.40%	11.41%	18.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹28.94B	30.82	―	0.54%	9.83%	-0.92%
HATSUN	61 Neutral	₹203.09B	89.83	―	0.61%	10.61%	7.97%
DMART	58 Neutral	₹2.45T	71.89	―	―	16.54%	1.69%

Avenue Supermarts Ltd. Corporate Events

Avenue Supermarts Shareholders Approve Appointment of New MD and CEO

Avenue Supermarts Ltd. has announced that its shareholders have approved, via remote e-voting through a postal ballot, the appointment of Mr. Anshul Asawa as Managing Director and designated Chief Executive Officer for a three-year term from April 1, 2026 to March 31, 2029. The resolution, passed with the requisite majority, formalizes a key leadership transition, and the detailed voting results and scrutinizer’s report have been made available on the company’s and NSDL’s websites, underscoring regulatory compliance and transparency for investors.

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.