Avenue Super. (DMART)

FairStock Score: 54/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Buffett’s and Graham’s hats here. DMART is a real business: latest quarter sales ₹18,101 Cr, net profit ₹856 Cr, five-year revenue CAGR 19.00%, and sales growth 15.13%. It carries low debt, with debt/equity 0.10, current ratio 3.20, Altman Z-score 41.46, and Piotroski F-score 8/9. ROCE 17.95% and ROE 12.52% are respectable, not spectacular, and free cash flow is only ₹278 Cr against ₹856 Cr net profit. Promoter holding 74.65% signals skin in the game, but no dividend yield means shareholders depend entirely on price appreciation. The 52-week range ₹3351.20-₹4644.00 shows sentiment swings, not value. The problem is price. At ₹4060, market cap ₹2.65 lakh Cr, P/E 86.20, P/B 10.80, EV/EBITDA 83.41, and PEG 20.49. Graham Number is ₹590.32, DCF intrinsic value ₹142.65. That gives a margin of safety of -551.78%, meaning I am paying many times what conservative asset value and cash flows justify. FairStock Score 54/100 confirms mixed picture. Even so, the business quality is not in doubt; the entry price is. Growth is decelerating: profit growth 12.78% trails sales growth 15.13% and five-year revenue CAGR 19.00%. For a business earning 12.52% ROE, an 86 P/E demands extraordinary future compounding. I admire the low-debt balance sheet, but I cannot call the moat wide from these numbers. I would wait for a much lower price or much faster profit growth before considering it.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer