Avenue Supermarts hits 52-week high on posting robust Q4 update

4 Apr 2024 , 02:14 PM

Avenue Supermarts’ stock price rose more than 5% to a 52-week high on Wednesday after the firm announced excellent business growth in the fourth quarter of fiscal year 24. DMart shares surged 5.61% to a new high of ₹4,715 on the NSE.

Avenue Supermarts, the operator of DMart outlets, recorded a standalone revenue of ₹12,393.46 Crore for the quarter ending March 2024, representing an almost 20% increase from ₹10,337.12 Crore in the same quarter of the previous year.

The company’s revenue growth during the quarter was driven by a 7% rise in revenue per store and a strong 13% year-on-year (YoY) increase in new store openings.

Revenue per store increased by 7% YoY to ₹140.4 crore, while revenue per sq.ft. increased by 5% YoY to ₹33,451 per sq.ft., leaving a 2% disparity between the two.

DMart is the most cost-effective retailer in India’s $500 billion urban food and grocery business. This has resulted in the lowest consumer pricing, as well as increased sales velocity and scale, lowering costs even more. This has enabled DMart to increase its market share in a price-sensitive sector.

At around 2.07 PM, Avenue Supermarts was trading 3.60% higher at Rs 4,621.50 per piece, against the previous close of Rs 4,460.90 on NSE.

DMart’s stock price has increased by more than 20% in the last month and more than 30% in the past year.

According to projections, brokers expect the total addressable market (TAM) to increase to $2.3 trillion in 25 years, with DMart’s share increasing to 5% from less than 1% currently. It believes private labels may be a significant differentiation, particularly when compared to e-commerce and rapid commerce.

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