DMart came into existence in some year which only augur’s little relevance to this analytical opinion.
Coming straight to the facts & figures before forming basis to a range bound conclusion.
- Follows ownership model of business similar to global giant Walmart.
- PE at 33, FY 17 Vs industry PE of 179.
- Promoter holding at 82% (approximate) after share allotment.
Comparison of Supermarts Avenue with its closest peer V-mart retail ltd
Revenue CAGR of 40% Vs 30%.
Operating profit margins at 7.9% Vs 7.6%.
Annual Revenue (FY 17) at Rs 25,844 crores Vs Rs 9849 crores.
ROE at 21.1% Vs 17%.
Net profit (CAGR) at 52% Vs 27%.
Asset T/O at 3.9 times Vs 6.55 times
Inventory T/O at 14.18 times Vs 4.11 times
- Out of total issue size :
- 35% is open for Retail allotment
- 50% for QIBs
- Rest 15% for institutional buyers.
Conclusion : To the blogger the data seems to suggest that an upper price band of Rs 299 per share is comparatively cheap. Hence, it’s a definite buy with an modest target of Rs 350, moderate target of Rs 399 & an aggressive price target of Rs 480.
For questions, suggestions, opinions & queries please comment.
Disclaimer : Notwithstanding any opinions my views are speculative in nature which bares me to be a guarantor of 100 % accuracy with regards to future trend prediction & pricing targets.