NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
We expect Avenue Supermarts Ltd. to outperform Nestle India Ltd. in the medium term, driven by-
valuation turning palatable; premium over Nestle has reduced from ~50% over the last two years to ~8% now,
known problems with limited downside business risk with-respect-to underperformance in apparel segment; DMart can choose not to sell what doesn't sell well (benefit of being a platform company),
revenue outperformance, while it appears to have been marked down to 18-21% compound annual growth rate (versus ~30% during pre-Covid quarters), it is still much higher (consistently; 6-10% same-sales store growth) compared to most other fast moving consumer goods/retail companies,
healthy net profit margin despite subdued performance in the margin-accretive apparel, general merchandise segments.
Upgrade DMart to Add (from Hold) and maintain Hold on Nestle.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
