Billionaire Radhakishan Damani's Avenue Supermarts shares surged by almost 6% on Thursday, hitting new 52-week highs of Rs 4,715 on the NSE and Rs 4,710.15 on the BSE.
This follows, Fintech providing an update mentioning its standalone revenue from operations of Rs 12,393.46 crore in the quarter ending March 2024, marking a growth of 19.89% from Rs 10,337.12 crore in the same period the previous year. On the BSE, the company's stock increased by 3.73% to Rs 4,626; on the NSE, it increased by 3.66% to Rs 4,623.95.
Avenue Supermarts' market valuation increased by Rs 10,824.95 crore to Rs 3,01,029.12 crore during intraday trading on the BSE.
Billionaire RK Damani witnessed a rise in his net worth, driven by his stakes in DMart and Avenue Supermarts. Damani's 23.03% stake in DMart surged from Rs 66,805 crore to Rs 69,430.22 crore, marking a gain of Rs 2,625 crore. His wife's 1% stake in Avenue Supermarts increased from Rs 2,902 crore to Rs 3,016 crore, representing a gain of over Rs 100 crore in a day. Additionally, his brother's 5.6% stake in DMart rose from Rs 16,251.43 crore to Rs 16,890.06 crore, up Rs 638 crore.
Motilal Oswal reported that revenue per store increased by 7% YoY to Rs 140.4 crore, while revenue per square foot grew by approximately 5% YoY to Rs 33,451 per square foot, resulting in a 2% gap between the two metrics. The strong sales growth for the March quarter at DMart was attributed to high productivity and footprint, in line with expectations.
The firm observed a steady growth in revenue per square foot over the past 3-4 quarters, with each quarter experiencing an increase of approximately 4-6% YoY. However, over the last three years, revenue per square foot had been constrained due to the inclusion of larger store sizes and weakened discretionary spending, which constituted 23-25% of revenue. Nevertheless, this trend has started to reverse in the last 3-4 quarters, as evidenced by the diminishing gap between revenue per store growth and revenue per square foot growth.
After a period of limited store additions in 9MFY24, with only 17 stores added, Avenue Supermarts expanded by adding 24 stores in December, bringing the total count to 365 stores. Motilal Oswal has set a target of Rs 4,700 for the stock.
(With Agency Inputs)
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