D-Mart delights its investors: Angel Broking

Views of Mr. Amarjeet Maurya (Sr. Equity Research Analyst- Mid Caps, Angel Broking):

"Avenue Supermarts Ltd (ASL), founded in 2002, is the owner of the well established supermarket chain D-Mart. ASL is amongst the largest and the most profitable Food & Grocery retailers in India. It offers wide range of Food and non-food products. ASL operates total 118 stores in 9 states and 1 Union Territory.

Currently, D-Mart is trading at 68.8x PE multiple (on 9FY17 annualized numbers), and has already witnessed more than 100% upside on the day of listing. We believe that all the positive aspects of the company are already factored in the current stock price (i.e. better RoE profile, promoter's strong background, strategically located stores, intense focus on maintaining lower costs and strong brand perception). Hence, we recommend the investors to book profits. Going forward, we don't expect multiple re-rating due to stretched valuations."

Source : Equity Bulls

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