NSE Symbol: DMART | BSE Code: 540376
DMart Share Price Performance
Trends of DMart Stocks in 2018:
On January 2, 2018, the Avenue Supermarts Limited started trading at Rs.1,173 on the NSE. The price increased slightly over the month and entered in Rs.1,200 territory. However, in the second half of the month, turbulence in the international markets caused the stock price to stumble at Rs.1,150 which was noticed in the first week of February as well.
The markets soon recovered after that, and the share price of DMart increased. The stocks concluded trading for the day at Rs.1,348 on February 28, 2018. Moreover, in just two months, the Avenue Supermarts shares delivered returns of more than 10%.
The month of March was also not unusual for the investors as the DMart share price became stagnant at levels around Rs.1,350. The price started to rose once again in April, and this time, the scrip crossed the Rs.1,450 mark. In entire April, the Avenue Supermarts Limited stocks traded around Rs.1,480.
In May, the prices dropped sharply, and the stocks traded at levels of around Rs.1,300. However, this slump was almost immediately followed by an impressive soar in prices. During the end of May, the DMart share price reached the mark of Rs.1,500.
In June, the stocks crossed the Rs.1,600 mark, but the price dipped suddenly in the second half of June, and consequently, the scrip was being traded at around Rs.1,450. On 29th June, the closing price was Rs.1,485.40.
Company’s Performance in 2017-2018:
For the Q4 of fiscal 2017-18, the revenues of the company from operations were recorded at Rs.3,809 crore - a slight lower from the income reported in the December quarter of the previous year. In comparison to the March quarter of the prior fiscal, however, the revenue of the company grew by 10%.
Correspondingly, the net PAT for the quarter was reported at Rs.167 crore, in comparison to Rs.96.6 crore which was recorded last year in the same period.
Considering the company's performance on an annual basis, for the year ended on March 31, 2018, the Avenue Supermarts Limited revealed its revenue to be at Rs.15,009 crore. It showed more than a 20% increase in revenue which was reported for the previous financial year.
A subsequent increase in net PAT for the year was also observed. The net PAT of the company was reported to be Rs.785 crore, higher in comparison to a Rs.483 crore, published for the last year. Similarly, EBITDA for the year also inclined over 10% to Rs.1,337 crore.
The previous liabilities of the company for the year were reported at Rs.293.7 crores of which borrowings are of worth Rs.246 crore. At the end of FY17, it is worth mentioning that these metrics, were of Rs.1,034 crore and Rs.980.92 crore respectively.
Information About Company:
DMart is a chain of supermarkets, owned and controlled by the Avenue Supermarts Limited. The DMart stores provide a wide array of products across various categories like groceries, home, personal care, bed and bath, fruits, vegetables, luggage, crockery, apparel and much more. Consequently, it is a one-stop shop for all the shopping requirements. It is present in more than 150 locations across the country.
History of the Company:
In 2002, DMart was founded and incorporated by Mr. Radhakishan Damani and his family to meet the necessities of Indian families. The first store of D-Mart was launched in Powai, and after the huge success, the company expanded its business in different parts of India. The company has conferred the status of Public in March 2017.
Board of Directors:
Mr. Ramesh Damani - Chairman & Independent Director
Mr. Damani did graduation in Commerce from the H.R College of Commerce and Economics, University of Bombay. After doing graduation, he attained MBA from the California State University, Northridge. He has been actively indulged in the securities market, and before joining the Avenues Supermarts Limited, he operated his own stockbroking company, Ramesh S Damani Finance Private Limited.
Mr. Ignatius Noronha - MD
Mr. Noronha currently serves as the MD of Avenues Supermarts Limited. He has been in the consumer goods sector for more than 20 years, out of which, he has spent eight years with HUL. He attained his graduation from the S.I.E.S College of Arts, Science, and Commerce, Mumbai and did a post-graduation from Narsee Monjee Institute of Management Studies(NMIMS).
Mr. Elvin Machado - Director (Full-time)
Mr. Machado has done majors in Economics from the St. Xavier’s College, Mumbai. Before joining the Avenue Supermarts Limited as a General Manager, Operations in 2007, he was associated with Hindustan Unilever Limited for almost 19 years. His immense experience in the FMCG sector has been crucial in the growth of this company.
Listings of DMart Shares in NSE, BSE, and Indices:
The shares of Avenue Supermarts Limited are available for trading on the National Stock Exchange of India Limited(NSE) and the Stock Exchange, Mumbai (BSE). The respective codes are as follows:
BSE Code: 540376
NSE Code: DMART
The company, being the relatively new participant on the bourses, is a part of the below-mentioned stock market indices:
Registered Office Address:
Anjaneya Cooperative Housing Society Limited,
Opposite to Hiranandani Foundation School
Orchard Avenue, Powai
Mumbai, Maharashtra - 400-076
Contact number: +91-22-33400500
Market Capitalization of D-Mart:
The market capitalization of Avenue Supermarts Limited or DMart, as of July 2018, is a little more than Rs.94,500 crore.
Why invest in Avenue Supermarts Limited?
Avenue Limited Supermarts is a renowned chain of supermarkets in India which offer highly competitive prices. The prices of DMart are 5-7% lower than its peers in the market. The DMart has been able to achieve this through their pricing strategy of Everyday low cost - Everyday low price.
Along with that, the operational style of the company has proved to be a prominent factor in the company success. The rent of the store can be saved by avoiding big malls. Also, DMart owns more than 80% of properties through which it operates stores. The culture of the company is humble as it treats its staff with respect and dignity.
The company has outnumbered its competitors by a considerable margin. While big brands like Aditya Birla Fashion and Future Life are struggling to report healthy numbers, DMart has generated a net profit of Rs.784.66 crore for Fiscal 2017-18. The sales turnover of the company is at Rs.15,000 crore for the year, and this number is expected to increase shortly. For the financial year 2018, the company has reported its debt-equity ratio at 0.09.
The performance of the scrip indicates that the stocks of DMart have been on a bull run ever since it was traded on the bourses. The DMart share price has been doubled since March 2017 as per the July 2018 reports.
Despite the strong foundations, it is still too early to predict whether the stock of the company is doing well because of its performance in the market or because of the sentiments, the investors have attached with the brand. In the long run, it is the company's performance which remains crucial more than anything else. However, even then it is quite advisable that the investor should do thorough research before investing.
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