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Avenue Supermarts Ltd logo

Avenue Supermarts Ltd

NSE: DMART BSE: 540376

3863.90

(-1.31%)

Sun, 22 Feb 2026, 03:56 am

Avenue Supermarts Analysis

dividend

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Pros

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    Cons

    • No need to calculate the sustainability of Avenue Supermarts's dividends in 3 years as they are not expected to pay a notable one for India.
    • Unable to evaluate Avenue Supermarts's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Avenue Supermarts's dividend against the top 25% market benchmark as the company has not reported any payouts.

    future

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    Pros

    • Cash flow for Avenue Supermarts is expected to increase by more than 50% in 2 years time.
    • Avenue Supermarts's earnings are expected to grow significantly at over 20% yearly.
    • Avenue Supermarts's earnings growth is expected to exceed the India market average.
    • Avenue Supermarts's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Avenue Supermarts's earnings are expected to increase by more than the low risk growth rate in 3 years time.
    • Avenue Supermarts's net income is expected to increase by more than 50% in 2 years time.
    • Performance (ROE) is expected to be above the current IN Consumer Retailing industry average.
    • An improvement in Avenue Supermarts's performance (ROE) is expected over the next 3 years.
    • Avenue Supermarts's revenue is expected to grow significantly at over 20% yearly.
    • Avenue Supermarts's revenue growth is expected to exceed the India market average.
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    Cons

    • Avenue Supermarts's earnings are expected to decrease over the next year.
    • Avenue Supermarts is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Avenue Supermarts's revenue is expected to increase but not above the 50% threshold in 2 years time.

    health

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    Pros

    • Avenue Supermarts is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Avenue Supermarts is profitable, therefore cash runway is not a concern.
    • Avenue Supermarts is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (704.7%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 12.9x debt.
    • Avenue Supermarts's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (75.4% vs 1.6% today).
    • Interest payments on debt are well covered by earnings (EBIT is 25.4x coverage).
    • Avenue Supermarts's level of debt (1.6%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Avenue Supermarts board of directors is about average.
    • Ignatius's remuneration is lower than average for companies of similar size in India.
    • Ignatius's compensation has been consistent with company performance over the past year, both up more than 20%.
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    Cons

    • Avenue Supermarts individual insiders have only sold shares in the past 3 months.

    past

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    Pros

    • Avenue Supermarts's 1-year earnings growth exceeds its 5-year average (44% vs 26.5%)
    • Avenue Supermarts has delivered over 20% year on year earnings growth in the past 5 years.
    • Avenue Supermarts used its assets more efficiently than the IN Consumer Retailing industry average last year based on Return on Assets.
    • Avenue Supermarts's earnings growth has exceeded the IN Consumer Retailing industry average in the past year (44% vs 9.9%).
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    Cons

    • Avenue Supermarts's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Avenue Supermarts has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • DMART outperformed the Consumer Retailing industry which returned 76.2% over the past year.
    • DMART outperformed the Market in India which returned -14.5% over the past year.
    • NSEI:DMART is up 3% along with the Consumer Retailing industry (2.1%) over the past month.
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    Cons

    • Avenue Supermarts's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Avenue Supermarts's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Avenue Supermarts is overvalued based on assets compared to the IN Consumer Retailing industry average.
    • Avenue Supermarts is poor value based on expected growth next year.
    • Avenue Supermarts is overvalued based on earnings compared to the IN Consumer Retailing industry average.
    • Avenue Supermarts is overvalued based on earnings compared to the India market.
    • NSEI:DMART is up 3% underperforming the market in India which returned 8% over the past month.

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