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Geojit Report
Avenue Supermarts Ltd.'s (DMart) investment case continues to rest on a long, visible runway for store-led growth, underpinned by consistent execution, according to the brokerage firm Geojit.
The brokerage also noted that new GST benefits passed on to customers, alongside stabilising macroeconomic conditions and normalising consumer demand, are expected to support volume-led growth.
The physical-store model, supported by continued aggressive expansion, remains DMart's principal defence against escalating quick-commerce competition, complemented by a measured DMart Ready scale-up and a sharper focus on home delivery as the preferred channel.
The accelerated pace of store additions is expected to temporarily stretch inventory days and result in moderately higher debt; however, the company is expected to maintain its everyday-low-discount model strategy.
DMart currently trades at 71x 1Yr Fwd PE (3yr avg =76x).
The brokerage maintains its Buy rating with a target price of Rs 5,063 by valuing at 70x based on FY28 EPS.
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