DMart Q4 Results Review - Back To A Steady Growth Path: Prabhudas Lilladher

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Avenue Supermarts Ltd. Q4/FY24 results indicated stabilization after erratic performance in operating parameters, as FY24 LTL was 9.9%, bills/store/day steady and H2 average bill value being 1.1% higher than H1 FY24. Sales/store grew by 7.0% YoY, while sales/square feet increased 6.8%. Cost of retail inched up by 27 bps as DMart added 24 stores in Q4 FY24. Q4 FY24 reported sales and adjusted profit after tax growth of 20.1/22.4% YoY while the same in H2 FY24 stands at 18.6% and 19.4% respectively. With 41 store additions in FY24, DMart seems slowly getting its act together to accelerate store openings in coming years..General merchandise and apparel improved in Q4, H2 sales proportion at 21.65% improved by 27 bps YoY, although it declined 67 bps for FY24. We continue to believe that loss of sales in apparel is structural, value formats like Zudio, and Reliance Trends have reduced the consumer appeal of Hypermarts. We factor in 45/50 store additions, 20.2% compound annual growth rate in sales, 25 bps margin expansion, which will enable 24% PAT CAGR over FY24-26. DMart LT growth story remains intact with 1500+ store potential in duopoly market and gradual scale up in DMart Ready. We increase 12 month discounted cash flow based target price to Rs 5031 (1-4% EPS cut) as we rollover to FY26. Maintain Buy..Click on the attachment to read the full report:.DMart Q4 Results Review - Strong Performance Continues: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

DMart Q4 Results Review - Back To A Steady Growth Path: Prabhudas Lilladher

General merchandise and apparel sales continue to hold positive post Diwali trends, however contribution reduced to ~21.65% for H2 FY24 up 27 bps YoY

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DMart Q4 Results Review - Back To A Steady Growth Path: Prabhudas Lilladher

General merchandise and apparel sales continue to hold positive post Diwali trends, however contribution reduced to ~21.65% for H2 FY24 up 27 bps YoY

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