InvestorQ : I had sold out my Avenue Supermart shares late last year. Can I buy the stock after the quarterly results?
Sam Eswaran made post

I had sold out my Avenue Supermart shares late last year. Can I buy the stock after the quarterly results?

Answer
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swati Bakhda answered.
1 year ago


Avenue Supermart, which operates the D-Mart brand, has announced a good set of numbers in the June quarter, especially on the growth front. Revenues for the quarter were up by 28% at Rs.5815 crore while net profits were higher by 32% at Rs.323 crore. After a break of a couple of quarters, the stock has come back to its old growth rates on a YOY basis. However, the operating margins of the company did see some contraction from 10.81% to 9.74% due to higher costs entailed in the quarter. The financing cost was sharply up by nearly 81% during the quarter and that had a significant impact on the prices.

However, even in the past the first quarter margins have not exactly been reflective of the full year margins and the first quarter has been among the weakest in terms of margins. The company has also sustained its aggressive pace of stores additions and that should see the growth coming through. The company already operates more than 180 stores across India. In terms of valuation the stock is still quoting at a rich P/E but the price of the stock has come down sharply in the last few months which make it attractive. You can buy this stock as a good play on the fast growing retail space in India.