Avenue Supermarts M-cap Crosses Rs 90,000 Crore Mark

Avenue Supermarts, the parent of hypermarket chain D-Mart, scaled a fresh all-time high of Rs 1,494.80 in the afternoon trade on Monday, with market capitalisation surpassing Rs 90,000 crore-mark for the first time ever since its listing last year.

Its m-cap stood at Rs 39,988.21 crore on the listing day, March 21, 2017.

Nearest biggies Mahindra & Mahindra (M&M) and BPCL have readings of Rs 96,720 crore and 98,484 crores, respectively.

The share price of Avenue Supermarts closed 3.48 per cent up at Rs 1,488, whereas benchmark BSE Sensex settled 91.71 points up at 33,880.

Brokerages are optimistic about the scrip's upside. Geojit Financial Services has ‘Buy’ call on the stock with 12-month target price of Rs 1,590.

Geojit Financial Services in a report said, “D-Mart offers daily value to its customers with low pricing across all products and categories. This is made available by minimising its cost of procurement, supply, and operation. This strategy helps D-Mart attract and retain customers,” Geojit Financial Services said in a report.”

The company has a strong track record of high growth and profitability in all of its performance matrices. “We expect high growth to continue aided by store additions, change in strategy, e-commerce, debt reduction and tailwinds from GST. As a result, we expect a high premium to be maintained in the medium term,” Geojit said in a report.