Avenue Supermarts Ltd (ASL), the owner of the well-established supermarket chain D-Mart, on Monday crossed the landmark of Rs 1 trillion in terms of market capitalisation. Its shares are now trading at Rs 1,599, up by 6 per cent from the previous close on Friday. The stock has given a return of 35 per cent since the start of this year and a whopping return of 374 per cent since its listing.
D-Mart initial public offer (IPO) is considered to be one of the biggest listings of recent times in terms of subscription and listing gains. On the listing day itself D-Mart, registered more than 100 per cent return. The shares traded at Rs 604.40 per share on the listing day, which was at 100 per cent premium over its issue price of Rs 299. The IPO of the retail chain was also oversubscribed by 104.59 per cent.
D-Mart registered a net profit of Rs 167 crore, up 73 per cent from a year ago, in the fourth quarter ending March. Total sales also jumped to Rs 3,810 crore from a year ago figure of Rs 3111, a jump of Rs 22.5 per cent.
During the last financial year, D-mart added 24 stores. ASL was founded in 2002 and is amongst the largest and the most profitable food and grocery retailers in India. At the time of listing ASL had total 118 stores in 9 states and 1 Union Territory.
HDFC Securities stated in one of its research reports, “ASL has benefitted from its in-depth understanding of local needs and its ability to respond quickly to changing consumer preferences. This has been achieved in part due to its advanced IT systems. ASL uses its IT systems for procurement, sales and inventory management which enables it to identify and quickly react to changes in customer preferences by adjusting its products available, brands carried, stock levels and pricing in each of its stores and effectively monitor and manage the performance of each of its stores.”