Moneycontrol Pro Ideas For Profit: Avenue Supermarts | CNBC TV18

Segment where we get a few ideas for profit from money control Pro Bharat Gyani of Money Control Comm joins us talk about stock that is tracking closely, but take it away. Today’s ideas will be Dmart limited. The company posted strong quarter 4 results with the revenue growth of 20% by 1. The business area expanded by 13% YOI while the revenue per square feet grew by 6%. YY crossing the pre COVID levels, healthy light to light growth for existing stores and pickup in the sales of new stores boosted the revenue per square feet performance. Gross margins improved by over 50 basis points YOI given by a better product mix. We expect demand to continue the cluster based expansion strategy healthy cash flow generations. And a strong cash on the balance sheet will enable the company to open new stores aggressively. Demand ready which is the online business of the company and is currently lost making advertising a very gradual ramp up enabling the company to restrict the overall losses. We expect the margins to improve going ahead given by a better product mix and improvement in the operating efficiencies. Although the share of online sales in the grocery industry has ramped up very significantly, there is still a lot of growth potential for brick and mortar centric players like D Mart. At the third market price, the stock is trading at AP of 73 times Fr 26 projections. While the valuations are in premium, but they’re justified given the strong earnings outlook. Thanks a lot for that Bharat. It’s time for a short break here.