Shares of this retail stock under the ‘large-cap’ category jumped around 5 percent on Wednesday after the company provided key business updates for Q2FY23-24. In the last five trading sessions, the stocks of the company have risen nearly 7 percent.
With a market capitalization of Rs 2.52 lakh crores, the stocks of Avenue Supermarts Limited started their trading session on Wednesday at Rs 3,751.30 and currently trade at Rs 3,876.70, gaining around 5 percent as compared to the previous close of Rs 3,722.50 apiece.
Such stock price movements were observed after the company through a regulatory filing with the Bombay Stock Exchange (BSE) dated 3rd October 2023, announced some key business updates.
The company, in its filing, reported an increase of around 18.50 percent in standalone operating revenues increasing from Rs 10,384.66 crores for the quarter ending September 2022 to Rs 12,307.72 crores for the quarter ending September 2023. Moreover, the total number of stores of the company stood at 336.
During the recent financial quarters, the company increased its prime business indicators such as operating revenues and after-tax profits. The operating revenues rose from Rs 10,594.11 crores during Q4FY22-23 to Rs 11,865.44 crores during Q1FY23-24, and, the after-tax profits, during the same time horizon, moved up from Rs 460.1 crores to Rs 658.71 crores.
In addition to the above, the basic profitability metrics of the company increased with the return on equity (RoE) taking a shift from 11.57 percent during FY21-22 to 16.03 percent during FY22-23, and, the return on capital employed (RoCE) moving up from 16.38 percent to 21.02 percent.
As per the shareholding pattern data available for the quarter ended June 2023, the company’s Promoters hold a 74.65 percent stake and the Foreign Institutional Investors (FIIs) hold a 8.17 percent stake in the company.
Incorporated in 2002, Avenue Supermarts Limited is a company based in India that is engaged in the business of operating supermarkets and organized retail under the brand name of ‘D-mart’. The company provides various products under the categories of food, non-food (FMCG), general merchandise, and apparel.
Written by Amit Madnani
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