Avenue Super. (DMART)
STALWARTFairStock Score: 52/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹4,520.55 |
| Market Cap | ₹2,50,376.06 Cr |
| P/E Ratio | 87.4 |
| ROCE | 17.95% |
| ROE | 12.52% |
| Dividend Yield | 0% |
| Profit Growth | 5.33% |
| Debt/Equity | 0.07 |
| Sales Growth | 15.37% |
| Free Cash Flow | ₹27,800 Cr |
| Promoter Holding | 74.65% |
| 52-Week Range | ₹3,600 — ₹4,949.5 |
| Sector | Retailing |
| Book Value | ₹351.76 |
Strengths
- Strong market leadership in hypermarket retail segment
- Profit growth of 18.3% exceeding sales growth showing margin expansion
- Healthy ROCE of 17.9% indicating efficient capital utilization
Concerns
- Very high P/E ratio of 87.4 compared to historical retail sector norms
- DhanIQ Score of 3/10 indicating weak investment attractiveness
- Zero dividend yield with no income component for investors
AI Analysis
Avenue Super. is a Stalwart company — known for its consistent retail operations and market leadership in the hypermarket segment. Trading at Rs 3,800 per share with a market cap of Rs 2.5 lakh crores, this retail giant commands significant market presence. However, the data indicates some valuation concerns that investors may consider carefully. The company trades at a P/E ratio of 87.4, which is substantially higher than historical norms for retail businesses, suggesting the market has priced in very high growth expectations. On the positive side, Avenue Super. demonstrates solid operational metrics with an ROCE of 17.9%, indicating efficient capital utilization. The profit growth of 18.3% outpaces sales growth of 13.3%, showing improving margins and operational efficiency. This margin expansion reflects the company's ability to optimize costs and pricing strategies. However, analysis suggests caution due to the DhanIQ Score of 3 out of 10, indicating weak overall investment attractiveness at current levels. The company pays no dividends, reinvesting profits for expansion. While the business fundamentals remain strong with consistent earnings and market leadership, the high valuation multiple may limit near-term returns. Investors may consider monitoring whether the company can sustain accelerated growth to justify current pricing, particularly in an increasingly competitive retail landscape.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer