IIFL Securities's Stock Idea: Buy Avenue Supermarts with Target Rs 4325

IIFL Securities remains bullish on Avenue Supermarts, the operator of retail chain D-Mart, recommending a buy with a target price of Rs 4,325. The current market price stands at Rs 4,231.6. The brokerage cites the company's strong fundamentals, including a consistent track record of same-store sales growth and EBITDA margin expansion. It believes Avenue Supermarts is well-positioned to benefit from the growing Indian retail market and consumer spending. The target price represents a potential upside of approximately 2.2% from the current market price.

About Avenue Supermarts:

Avenue Supermarts, listed on the National Stock Exchange (NSE) of India, is a leading supermarket chain operating under the brand name "DMart". The company offers a wide range of products, including groceries, apparels, home appliances, electronics, and personal care items. DMart is known for its value-for-money pricing and its focus on providing a convenient and comprehensive shopping experience to its customers. With over 270 stores across India, Avenue Supermarts has established a strong presence in various regions and continues to expand its network aggressively.

52 Week Price Trend:

Avenue Supermarts, the parent company of DMart, is currently trading at Rs 4231.6. This is slightly higher than its 52-week high of Rs 4206. The stock has witnessed a steady rise over the past year, driven by the company's strong financial performance and expansion plans. DMart has a strong presence in the Indian retail market and is known for its low prices and wide variety of products. The company has been expanding rapidly, opening new stores across the country. This growth is expected to continue in the future, which could further drive up the stock price.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, DMART has received an AAA rating, indicating a low fundamental risk profile. This rating is based on the company's strong management, positive outlook, high safety, and favorable trend. DMART's solid management team, coupled with its robust business model and industry position, contribute to its low risk profile. The company's consistent financial performance, strong cash flow, and conservative financial leverage also support its safety rating.

Fundamental and Technical information provided in this blog were last updated on 22 Mar, 2024

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