Stocks of Avenue Supermarts Limited are in the red today with a downside of approximately 4 percent and currently trading at Rs 3,535. In the last 5 trading sessions, the stock has moved down almost 5 percent, from Rs 3,713 to the current price levels.
The company, a couple of days back, announced its financial results for Q4 as well as Annual results for FY22-23. Details of the same are been discussed later on in the report.
Bearish sentiments in the markets are witnessed after the company’s financial parameters were not able to meet the market expectations.
Avenue Supermarts Limited is a company based in India that is engaged in the business of organized retail and operates supermarkets under the brand name ‘D-Mart’. It provides products under the categories of Foods, Non-Foods (FMCG), and General Merchandise & Apparel. The company’s business operations are mainly carried out within India itself.
Having a quick walkthrough of the quarterly financials, the operating revenues reduced from Rs 11,569 crores in Q3 v/s Rs 10,594 crores in Q4. Moreover, the net profit numbers have moved down from Rs 590 crores to Rs 460 crores representing a downfall of 22 percent.
Showcasing a positive scenario on a YoY basis, the operating revenues jumped from Rs 30,976 crores during FY21-22 to Rs 42,840 crores in FY22-23 and net profits moving up from Rs 1,492 crores to Rs 2,378 crores.
Coming onto the profitability metrics, the basic ones such as return on equity (ROE), as well as return on capital employed (ROCE), increased in recent financial years with the former increasing from 9.48 percent during FY20-21 to 11.57 percent in FY21-22 and the latter moving up from 13.09 percent to 16.38 percent.
According to the shareholding pattern data released, promoters of the company hold a 74.93 percent stake, and Foreign Institutional Investors (FIIs) hold a 8.17 percent stake in the company.
Written by Amit Madnani
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