#DMart  is down -32% from top. What are the valuations of the company looking like & how has been the growth. Some facts 

1) At peak it had a PE multiple of 313 times

2) Current PE of the firm is still 89 times.

3) The company has delivered a growth of 20% on topline for the last 5 years.

4) The profit growth has been better at 32% for last 3 years & 23% for last 5 years.

5) The ROE is at 14% all throughout. Not going up, not going down.

6) The company in its latest quarter numbers has posted numbers lesser than the last 3-5 year average

7) In the latest quarter numbers:
Topline has grown by 17.6%
Profits have grown by 4.9%

detailed results on 
https://t.co/8IteLnyaPD

8) The company is facing lot of headwinds by quick commerce. Is it a mere co-incidence that cos share price has started to fall since quick commerce guys have started to grow?

9) Share price of the company has given sub standard returns for 3 years at -4% CAGR

Going ahead :

1) The company will have to deliver on robust topline to maintain the valuations
2) The co might want to focus on their own quick commerce delivery, if it is viable for their business model
3) The co might want to consider getting into higher margin products to better profitability
4) With the new management (CEO) coming in, will be interesting to see how the company changes its approach

Disc: This is not a reco for buy / sell.
Please do your own research before taking any decision on buying / selling any stock
 
#DMart #stockmarketsindia #AvenueSupermarts #StocksToBuy #Stocks