BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Avenue Supermarts Ltd.’s consolidated Ebitda/profit after tax grew 26%/24% YoY on strong store adds, with revenue coming in 35% above pre-Covid-19 levels (Q3 FY20). Lower cost of retailing has aided a 60 basis points improvement in the Ebitda margin since the pre-Covid quarter (Q3 FY20).
We factor in a robust FY22E–24E Ebitda/profit after tax compound annual growth rate of 46%, with a strong footprint addition – as we see limited impact on growth despite the Covid-19 impact over the last four to six quarters. This enables the stock to operate at approximately two times price/earnings-to-growth. However, we are cognizant of the prominence of new-age grocery models and rich valuations.
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