Avenue Supermarts (owners of the D-Mart brand), reported a 21% rise in net profits to Rs.203 core and a 32% growth in revenues to Rs.5033 crore. However, the profit growth that you are seeing is the slowest growth in the last 8 quarters so surely there is a pressure on growth at higher levels. The company had EBITDA margins of 7.5% and that number has been marginally contracting in the last few quarters putting pressure on the profit growth. The good thing about the results is that the average revenue per square feet of store space has gone up from Rs.32,719 in FY-19 to Rs.35,647 in FY-19. This is indicative of higher store efficiencies and better scope for growing profit in the future.

Before you take a decision on buying the stock, there are 3 factors that you must consider. The stock has corrected nearly 30% from its peak level but its operating metrics are still quite strong as seen in its per store revenues number. The stock continues to trade at P/E ratios of 75X but that is the kind of ratio it has sustained over the last 2 years since it got listed. At the current price of Rs.1250, you can look to buy the stock for investment purpose as your margin of safety is reasonably good.