Avenue Supermarts Ltd.
NSE: DMARTAvenue Supermarts Ltd.: A 30-second snapshot
Avenue Supermarts (DMART) trades at ₹4,071.8 — below both its 50-DMA (₹4,284) and 200-DMA (₹4,152), with a 52-week drawdown of 17.7% and a 1-year price change of just 0.7%. The business reported FY26 revenue growth of ~15.9%, crossed 500 stores, and posted 5-year earnings and revenue CAGRs of approximately 19-20%, while the trailing PE of 88.9x and forward PE of 57.4x price in continued high-growth execution.
P/E
88.9
Forward P/E
57.4
ROE
+12.9%
Debt / Equity
9.91
Profit Margin
+4.3%
Div. Yield
—
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
41/100
News
8 headlines · 5 positive · 1 negative
DMart shares fall over 3% after Q4 profit misses estimates, even as brokerages bullish on strong topline... - Moneycontrol.com
Moneycontrol.com
Avenue Supermarts Q4 Review: Citi Hikes Target On Temporary Demand Spike Amid Profit Beat - NDTV Profit
NDTV Profit
Avenue Supermarts FY26 Audited Results: 15.9% Revenue Growth, 500 Stores Milestone - scanx.trade
scanx.trade
Avenue Supermarts shares could rise as much as 44% after Q4 results, analysts project - CNBC TV18
CNBC TV18
D-Mart Q4 results: Net profit rises 19.2% to ₹656.42 cr, sales up 19% - Business Standard
Business Standard
Recent context
- ·Q4 FY26 results (reported early May 2026): net profit up 19.2% to ₹656 crore, revenue up 19% — headline figures beat on growth rates but missed analyst profit estimates in absolute terms, triggering a 3%+ intraday decline on results day.
- ·FY26 full-year audited results confirmed 15.9% revenue growth and the milestone of reaching 500 stores, framing DMART as a consistent store-count compounder in organised grocery retail.
- ·Citi revised its price target upward following Q4 results, attributing near-term demand strength partly to a temporary spike; the stock remains 17.7% below its 52-week high as of the analysis date.
Strengths
- +5-year revenue CAGR of 18.9% and earnings CAGR of 19.6% reflect sustained top-line compounding across FY22–FY26, culminating in a 500-store milestone in FY26.
- +Forward PE of 57.4x represents a compression of ~34% from the trailing PE of 88.9x, implying the market expects meaningful earnings acceleration in the near term based on analyst estimates.
- +Q4 FY26 net profit rose 19.2% YoY to ₹656 crore and revenue grew 19% YoY, maintaining a multi-year pattern of double-digit quarterly growth.
- +RSI of 33.6 places the stock close to oversold territory; the 52-week low zone and identified support levels of ₹3,700–₹3,630 are approximately 9–11% below current price.
Weaknesses
- −D/E of 9.91 is materially elevated for a consumer retail business and trending higher; FCF was positive in only 2 of the tracked years, indicating persistent cash consumption relative to earnings.
- −ROE of 12.94% has not exceeded 15% in any tracked year (roeYearsAbove15 = 0) and the fundamental consistency score is 33/100 — capital returns are structurally weak relative to the trailing PE of 88.9x.
- −Profit margin of 4.32% is thin for the premium multiple the stock commands; any compression from competitive pricing, input costs, or operating deleverage would directly pressure the earnings-growth assumptions embedded in the valuation.
- −DMART ranks 5th of 6 in its Consumer Goods peer group on both trailing PE (most expensive) and overall quality score (37 vs peer high of 60), indicating the premium is not supported by relative fundamental quality within the sector.
Open questions
- ?Does the 5-year earnings CAGR of ~19.6% reflect a structural competitive advantage in the organised grocery format, or is it partly a function of the relatively underpenetrated organised-retail market that peers are now also targeting?
- ?Given that D/E stands at 9.91 with a rising trend and FCF was positive in only 2 of the tracked years, how is the capital structure being financed — operating lease obligations, debt-funded store expansion, or both — and what are the interest-coverage implications at current margins?
- ?The forward PE of 57.4x implies a significant step-up in earnings relative to the trailing PE of 88.9x; what specific operating-leverage or margin-expansion drivers would need to materialise for the business to grow into that implied earnings level?
- ?DMART ranks at the bottom of its Consumer Goods peer group on quality score (37/100) despite being the highest-PE stock in the group — does the market premium reflect an expectation of future quality improvement, or a scarcity premium for the organised-grocery format itself?
Peer comparison: Consumer Goods
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| DMART | Avenue Supermarts Ltd.You're viewing | 88.9 | +12.9% | 37 |
| Industry avg | across 5 peers | 64.6 | +20.6% | 48 |
| INDHOTEL | Indian Hotels Co. Ltd. | 44.1 | +16.4% | 60 |
| ASIANPAINT | Asian Paints Ltd. | 58.3 | +20.9% | 58 |
| TRENT | Trent Ltd. | 85.6 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| TITAN | Titan Company Ltd. | 70.5 | +37.1% | 34 |
Technical state
Current price
₹4,071.80
SMA 50
₹4,284.35
SMA 200
₹4,151.81
RSI (14)
33.6 (neutral)
From 52w high
-17.7%
1Y return
+0.7%
3M return
+5.3%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highD/E of 9.91 is materially elevated for a consumer retail business; debt trend is classified as rising and FCF was positive in only 2 of the tracked years, indicating the business has consistently consumed more cash than it generates.
- highROE of 12.94% has not exceeded 15% in any tracked year (roeYearsAbove15 = 0) and consistency score is 33/100 — capital returns are weak relative to a trailing PE of 88.9x and a profit margin of 4.32%.
- mediumQ4 net profit missed analyst estimates despite 19% YoY PAT growth, triggering a 3%+ intraday decline; earnings delivery fell short of the premium the valuation multiple implies.
- mediumProfit margin of 4.32% combined with a trailing PE of 88.9x leaves a narrow buffer for any operating-leverage compression, competitive pricing pressure, or input-cost inflation.
- lowDMART ranks 5th of 6 peers on PE (highest trailing earnings multiple in the group) and 5th of 6 on quality score (37 vs group range up to 60) — bottom-tier positioning on most comparative metrics within the Consumer Goods peer set.
Cross-section contradictions
- Q4 PAT and revenue each grew ~19% YoY and the 5-year earnings CAGR is 19.6%, yet ROE has never cleared 15% in any tracked year and FCF was positive in only 2 of those years — headline revenue compounding has not translated into the capital-efficiency profile typically associated with premium-rated retail compounders.
- News sentiment is net positive (5 positive vs 1 negative of 8 articles) yet the most prominent headline is a Q4 profit miss that drove a 3%+ single-day decline — the aggregate sentiment label obscures a meaningful earnings-delivery shortfall relative to a trailing PE of 88.9x.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days