Scarcity premium is holding up DMart, but for how long?
- Avenue stock trades at about 115x and 88x estimated earnings for FY23 and FY24, respectively
- Standalone revenue in the December quarter grew 22% from a year earlier
Avenue Supermarts Ltd’s shares are down about 20% from their 52-week high of ₹5,900 in October on the National Stock Exchange. Avenue runs the DMart chain of retail stores. Analysts point out that the stock’s exorbitant valuations are one factor responsible for the correction.