Exploring the DMART Share Price Targets for 2024 to 2030. Avenue Supermarts Limited, an India-based company, specializes in organized retail through its chain of supermarkets under the brand name DMart. DMart offers a wide range of products with a focus on food, non-food fast-moving consumer goods (FMCG), and general merchandise, catering to various customer needs.
Each DMart store stocks home utility items such as food, toiletries, beauty products, clothing, kitchenware, and home appliances.
The company’s product categories include bed and bath, dairy and frozen goods, fruits and vegetables, crockery, toys, apparel for children and adults, home and personal care items, daily essentials, and groceries.
With approximately 324 stores, DMart operates across several states in India, including Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, and Chhattisgarh.
Company Profile
| Company Type | Public |
| Traded as | BSE: 540376, NSE: DMART |
| ISIN | INE192R01011 |
| Industry | Retail |
| Genre | Supermarket |
| Founded | May 15, 2002 |
| Founder | Radhakishan Damani |
| Headquarters | Powai, Mumbai, Maharashtra, India |
| Number of Locations | 361 (March 2024) |
| Area Served | India |
| Chairman | Radhakishan Damani |
| CEO | Ignatius Navil Noronha |
| Revenue | ₹42,840 crore (US$5.4 billion) (FY 23) |
| Number of Employees | 12,108 permanent 48,793 contractual |
| Official Website | www.dmartindia.com |
[DMART] Avenue Supermarts Ltd. Fundamental Analysis
| MARKET CAP | ₹ 3,09,264.14 Cr. |
| ENTERPRISE VALUE | ₹ 3,07,891.33 Cr. |
| NO. OF SHARES | 65.07 Cr. |
| P/E | 119.13 |
| P/B | 16.57 |
| FACE VALUE | ₹ 10 |
| DIV. YIELD | 0 % |
| BOOK VALUE (TTM) | ₹ 286.79 |
| CASH | ₹ 1,372.81 Cr. |
| DEBT | ₹ 0 Cr. |
| PROMOTER HOLDING | 74.65 % |
| EPS (TTM) | ₹ 39.89 |
| SALES GROWTH | 37.82% |
| ROE | 16.85 % |
| ROCE | 21.55% |
| PROFIT GROWTH | 58.18 % |
| Year | DMART Share Price Targets 2024 |
|---|---|
| 2024 | ₹ 4,700 – ₹ 5,271 |
Commenting on the recent financial update provided by Avenue Supermarts, Macquarie expressed concerns over weaker-than-anticipated sales commentary and observed a slower pace in store additions. Consequently, the brokerage has adjusted its earnings per share (EPS) estimates for FY24/25/26, reducing them by 7% to accommodate the slower sales momentum.
However, Macquarie maintains its positive outlook (‘Outperform’ rating) on the stock, expressing confidence in DMart’s ability to mitigate weaknesses in the apparel segment.
Meanwhile, Morgan Stanley maintains an ‘Overweight’ rating on Avenue Supermarts’ stock. Although Q3 standalone revenue fell approximately 5% short of estimates, the brokerage notes an estimated implied same-store sales growth (SSSG) of around 7%, indicating resilience. Furthermore, Morgan Stanley highlights ongoing improvements in efficiency metrics as a significant positive.
Looking ahead, the brokerage emphasizes that the expansion of DMart’s network in the fourth quarter will be closely monitored. As such, Morgan Stanley has set a target price of Rs 4500 to Rs 5571 for the stock.
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| Year | DMART Share Price Targets 2025 |
|---|---|
| 2025 | ₹ 6,050 |
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| Year | DMART Share Price Targets 2030 |
|---|---|
| 2030 | ₹ 8,890 |
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| Year | DMART Share Price Targets 2040 |
|---|---|
| 2040 | ₹ 15,510 |
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| Year | DMART Share Price Targets 2050 |
|---|---|
| 2050 | ₹ 22,500 |
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The retailing sector encompasses various categories catering to diverse consumer needs such as food, apparel, consumer goods, financial services, and leisure. In India, the retail industry has experienced substantial growth driven by the country’s economic fundamentals in recent years.
India’s rapidly evolving consumer market demands constant innovation from retailers to maintain relevance. With a growing population and sustained demand, significant opportunities are emerging in the retail sector. There’s a noticeable shift in Indian markets from necessity-based to fashion, style, and fitness-oriented consumption patterns, indicating potential for increased global market share through exports. As lifestyles evolve and affluence rises, domestic demand is expected to escalate.
Moreover, the retail industry is poised to face stiff competition from innovative digital platforms.
Key financial parameters for a retail sector stock like Avenue Supermarts include:
- Sales Growth and Revenue per Square Foot: Analyzing historical sales growth helps forecast future sales. Avenue Supermarts’ current year sales stand at Rs 41,833.25 Cr, with a compounded sales growth rate of 19.24% over the past three years.
- Operating Margin: This metric indicates the company’s operational efficiency. Avenue Supermarts’ operating margin for the current financial year is 8.75%.
- Current Ratio: Reflecting the working capital ratio, the current ratio assesses the company’s ability to generate sufficient cash for operational needs. Avenue Supermarts boasts a current ratio of 4.00 for the current year.
- Return Ratios: Return on Assets (ROA) and Return on Equity (ROE) offer insights into the company’s profitability and efficiency. For Avenue Supermarts, the current year’s ROA and ROE stand at 15.20% and 16.85%, respectively, with a 3-year average ROE of 13.06%.
- Dividend Yield: This metric indicates the dividend relative to the stock price. Avenue Supermarts’ current year dividend yield is Rs 0, amounting to 0%.
- Share Price: Avenue Supermarts’ current share price is Rs 4754. Utilizing valuation calculators can help determine whether the stock is undervalued or overvalued.
👍 Strengths
- Over the past three years, the company has demonstrated impressive profit growth, with a notable increase of 23.72%.
- Consistent revenue growth of 19.24% over the same period showcases the company’s strong performance.
- The company operates with virtually no debt, indicating financial stability.
- A healthy interest coverage ratio of 68.22 reflects the company’s ability to comfortably cover its interest expenses.
- Efficient management of cash conversion cycle, with a duration of 17.99 days, demonstrates effective working capital management.
- With a current ratio of 4.00, the company maintains a robust liquidity position.
- A high promoter holding of 74.65% indicates strong confidence and commitment from key stakeholders.
👎 Weakness
- The company’s current price-to-earnings ratio stands at a high of 119.13, potentially signaling overvaluation.
- Similarly, the enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio is high at 74.65, suggesting the company may be trading at a premium.
FAQs
Does DMART Pay Dividends?
No, DMART does not currently pay dividends to its shareholders.
Expected Targeted share price for DMART stands between ₹ 5,810 – ₹ 6,050 in 2025.
