Avenue Supermarts - Valuations Continue To Outpace Growth: Centrum Broking Initiates Coverage
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Centrum Broking Report
Avenue Supermarts Ltd., one of the largest grocery retailers in India, has all the ingredients for it to be a long term success story. Under-penetrated market, well targeted customer base, patience capital and sharp execution would allow D-Mart to grow its top line at compound annual growth rate of 20% plus over next ten years.
We expect D-Mart to open ~40 stores per year over FY22-24 and like-to-like, to grow at CAGR 23% over FY20-24E. Though we remain bullish on the company’s secular growth story we believe that current valuations have outpaced the near term growth expectations.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.