D-Mart operator Avenue Supermarts zooms 9% as Goldman Sachs initiates coverage with buy

Moneycontrol News

Share price of Avenue Supermarts, the operator of D-Mart retail chain, hit a fresh record high of Rs 1,122.95 on Tuesday, up 9.15 percent intraday after the global research house has initiated coverage with buy rating on the stock.

Goldman Sachs has initiated coverage on the stock with a buy rating and 12-month target price of Rs 1586 per share, implying a whopping 53 percent upside potential.

While adding Avenue Supermarts to conviction list, the research house said it expects earnings before interest and tax to grow 13 times in next 10 years.

It is a play on urban consumption, it feels.

Since its listing, the stock has been rallied more than 275 percent from its issue price of Rs 299. It had listed on exchanges on March 21, 2017.

Supermarket chain D-Mart is owned and operated by Avenue Supermarts, a company founded by ace investor Radhakishan Damani.

From the launch of its first store in Powai (Mumbai) in 2002, DMart has a well-established presence in 132 locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh and NCR.

Avenue Supermarts owns brands like D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour etc.