Avenue Supermarts (DMART.NS)
Consumer · NSE · India
Fundamentals
Valuation and ratings
Avenue Supermarts trades at ₹3,957.90, which is 56% above the ₹1,732.41 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 49 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 89.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Avenue Supermarts
Avenue Supermarts Limited engages in the business of organized retail and operating supermarkets under the D-Mart brand name in India. The company offers food products, such as groceries, staples, processed food products, dairy, frozen products, beverages and confectionery products, and fruits and vegetables; non-food products, including home care and personal care products, toiletries, and other over the counter products; and general merchandise and apparel products comprising bed and bath products, toys and games, crockery, plastic goods, garments, footwear, utensils, and home appliances. It is also involved in the online and multi-channel retail of grocery and household products under the DMart Ready brand name. The company was incorporated in 2000 and is based in Mumbai, India.
DMART.NS passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Avenue Supermarts (DMART.NS) undervalued?
Against our discounted cash flow estimate of ₹1,732.41, DMART.NS at ₹3,957.90 is 56% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is DMART.NS's P/E ratio?
DMART.NS trades at 89.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.