Share price of Radhakishan Damani-led Avenue Supermarts has risen nearly four times since the listing of Mumbai-based retailer in March 2017. Avenue Supermarts, the parent firm of D-Mart which is among the most profitable food and grocery retail chains in India, has delivered return of 290% in a short span of nearly 3 years.
The large cap stock, which listed at Rs 604 on March 21, 2017, hit its all-time high of Rs 2,360.75 on February 6, 2020. Avenue Supermarts share price gained up to 5% to hit an all-time high after the company launched a qualified institutional placement (QIP) on February 5, offering to raise up to Rs 4,098 crore. The firm will issue 2 crore equity shares of face value Rs 10 each, at a floor price of Rs 1,999.04 apiece, through the QIP.
An investment of Rs 1 lakh in Avenue Supermarts stock in March 2017 would have turned to Rs 3,90,728 on Thursday (February 6).
The stock currently trades at Rs 2,294 and is 3.68% away from all-time high of Rs 2,360. Over the years, share price of Avenue Supermarts has outperformed Sensex. The benchmark index managed to gain a mere 40.27% compared to 290% rise in the stock during the period.
The past year has been particularly good with Avenue Supermarts stock gaining 54%. In comparison, the benchmark Sensex rose 11.36% during the period.
The retail sector stock has outperformed its peers during the period. While stock of Tata Group's retail arm Trent has managed to deliver 132% returns in nearly three years, share price of Aditya Birla Fashion has gained 70% during the period.
Stock price of Kishore Biyani-led Future Retail rose 52% during the period. Only stock of multi-brand retail chain V-Mart has inched closer to returns delivered by the Avenue Supermarts stock.
Share price of Gurgaon based V-Mart has gained 200% in nearly three years.
Financial performance of Avenue Supermarts has been stellar during the last three years.
For fiscal ended March 2019, net profit stood at Rs 936.35 crore compared to Rs 784.66 crore recorded for fiscal ended March 2018. The firm logged profit of Rs 482.64 crore for fiscal ended March 2017.
Revenue rose to Rs 19,916 crore for fiscal ended March 2019 compared to Rs 11,881.12 crore revenue logged for fiscal ended March 2017.
Earnings per share rose to Rs 15 in last fiscal compared to Rs 8.56 for fiscal ended March 2017.
Avenue Supermarts logged a 53.3 per cent year-on-year rise in standalone profit at Rs 394 crore in Q3 of current fiscal compared with Rs 257 crore recorded in the corresponding quarter of last fiscal.
Revenue rose 23.90 per cent to Rs 6,752 crore compared with Rs 5,451 crore reported for the year-ago period. EBITDA rose to Rs 593 crore from Rs 453 crore year on year. EBITDA margin for the quarter came in at 8.8 per cent, a rise of 50 basis points over 8.3 per cent.
By Aseem Thapliyal