Home >Markets >Stock Markets >Avenue hits 3 trillion market cap
Listen to this article

Avenue Supermarts Ltd, the owner of D-Mart chain of retail stores, hit 3 trillion in market capitalization on Monday with its shares surging over 70% so far in 2021. It is the seventeenth listed firm to achieve this milestone. During the day, the stock rose 9.73% to hit a fresh high of 4,837, with the market cap scaling to 3.11 trillion. At close, the scrip settled at 4,719.40 on the Bombay Stock Exchange, up 7.06% from its previous close.

Only 16 Indian listed firms, including Reliance Industries Ltd, Tata Consultancy Services, HDFC Bank, Hindustan Unilever Ltd, Infosys, HDFC Ltd, ICICI Bank, Bajaj Finance, ITC, Kotak Mahindra Bank, Bharti Airtel Ltd, State Bank of India, ONGC, Wipro Ltd, HCL Technologies and Asian Paints Ltd, had so far breached the 3 trillion market cap mark.

Avenue Supermarts clocked 46% year-on-year growth in standalone revenue in the second quarter to 7,649.64 crore from 5,218.15 crore a year ago. According to Goldman Sachs, the growth was 5% ahead of its estimates. “We believe the revenue beat was driven by stronger footfall recovery as lockdown restrictions eased during the quarter," it added.

The brokerage maintained its buy rating on the stock, increasing its target price to 4,539 from 4,239. In the September quarter, Avenue Supermarts added eight stores to its network taking the total store count to 246.

“Given the stock’s run-up in the past one year, the key questions for investors are whether the valuation (106x FY23e PE) is ahead of fundamentals and whether there is a risk of de-rating. In our view, we are still midway in the evolving high-growth compounding construct; investors should continue to stay positive on D-Mart," said HSBC Global Research.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout