At 9.50 am, D-Mart share price surged to a record-high of Rs1,608.50, up 1% from previous close, lending the firm a market capitalisation of Rs100,171.80 crore
Mumbai: D-Mart parent Avenue Supermarts Ltd on Monday joined the elite club of companies with Rs1 trillion market capitalisation after its share price surged to a record-high of Rs1,608.50, up 1% from previous close, BSE data showed.
At 9.50am, D-Mart saw its market capitalisation touch Rs100,171.80 crore.
The stock has gained 20% in last three weeks. So far this year it has gained 35%. The scrip has jumped 373.86% from its offer price of Rs299 since its debut in March 2017.
This after D-Mart promoter Radhakishan Damani sold nearly 6.2 million shares, or 1% stake, in Avenue Supermarts last week to ensure that the firm meets the minimum public shareholding norms. The company was recently included in the MSCI India Domestic and MSCI India Domestic Small Cap Index, with effect from 1 June.
“D-Mart has a strong track record of high growth and profitability in all of its performance matrices. We expect high growth to continue aided by store additions, change in strategy, e-com, debt reduction and tailwinds from GST. As a result we expect high premium to be maintain in the medium-term” said investment services firm Geojit Financial Services.
In the March quarter, D-Mart posted a net profit of Rs 167 crore, up 73% from a year ago. Total revenue rose 22.5% from a year ago to Rs3,810 crore.
D-mart added 24 stores during 2017-18—the highest number of stores additions in a year since 2012 but lower than management’s internal expectations of 30. The D-Mart management has cited store addition as one of the key challenges and focus areas for the company.
“We now factor in 25 store openings/year (20 earlier) and increase our EPS estimates by 1% for FY19 and 4% for FY20. We estimate 32% EBIDTA and 33% PAT CAGR over FY18‐20. We believe that valuations at 66.8xFY20 EPS factor in the positives,” said Prabhudas Lilladher in a report to its investors. The brokerage firm has retained its reduce ratings with a target price of Rs1,003 a share.
Of the 15 brokers tracking the D-Mart stock on Bloomberg, five recommended a ‘buy’ rating, eight asked its investors to ‘sell’ the stock and two have a ‘hold’ rating.