External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Avenue Supermarts: Revenue grew by 18.5% (four-year CAGR: 19.9%)</li><li>Sales density remains sub-par vis-a-vis the pre-pandemic level (~INR35.3k/sq ft in Q2FY24 vs INR36.6k/sq ft in Q2FY20)</li><li>Lower discretionary purchases vs pre-pandemic levels (general merchandise’s contribution trending towards pre-pandemic times though) kept underlying profitability/unit economics weak</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts: Revenue grew by 18.5% (four-year CAGR: 19.9%)Sales density remains sub-par vis-a-vis the pre-pandemic level (~INR35.3k/sq ft in Q2FY24 vs INR36.6k/sq ft in Q2FY20)Lower discretionary purchases vs pre-pandemic levels (general merchandise’s contribution trending towards pre-pandemic times though) kept underlying profitability/unit economics weakContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts - Margin Pressure Continues

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Financial Performance: DMART Q2FY24 reported consolidated revenue growth of 19% YoY (20% on a 4-Year CAGR basis) to Rs 12,624 Cr.</li><li>The growth was led by FMCG and Staples segments while the General Merchandise and Apparel segments remained weakas expected.</li><li>The company’s gross margins stood at 14.7%, down 45bps YoY, signifying stress in high-margin general merchandise and the apparel business. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Financial Performance: DMART Q2FY24 reported consolidated revenue growth of 19% YoY (20% on a 4-Year CAGR basis) to Rs 12,624 Cr.The growth was led by FMCG and Staples segments while the General Merchandise and Apparel segments remained weakas expected.The company’s gross margins stood at 14.7%, down 45bps YoY, signifying stress in high-margin general merchandise and the apparel business. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts Ltd - General Merchandise & Apparel Yet to Recover

<ul><li>DMART Q1FY24 reported consolidated revenue growth of 18% YoY (20% on a 4-Year CAGR basis) to Rs 11,865 Cr.</li><li>The growth was led by FMCG and Staples segments while the General Merchandise and Apparel segments remained weak as expected.</li><li>The company’s gross margins stood at 15.2%, down 115bps YoY, signifying stress in high-margin general merchandise and the apparel business.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DMART Q1FY24 reported consolidated revenue growth of 18% YoY (20% on a 4-Year CAGR basis) to Rs 11,865 Cr.The growth was led by FMCG and Staples segments while the General Merchandise and Apparel segments remained weak as expected.The company’s gross margins stood at 15.2%, down 115bps YoY, signifying stress in high-margin general merchandise and the apparel business.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts Ltd. - General Merchandise & Apparel Yet to Recover

<ul><li>DMART Q4FY23 reported consolidated revenue growth of ~21% YoY (19% on a 3-Year CAGR basis) to Rs 10,594 Cr.</li><li>The growth was led by FMCG and Staples segments, while the General Merchandise and Apparel segments remained weak as expected.</li><li>The company’s gross margins stood at 14%, down 91bps YoY, signifying stress in high-margin general merchandise and the apparel business.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DMART Q4FY23 reported consolidated revenue growth of ~21% YoY (19% on a 3-Year CAGR basis) to Rs 10,594 Cr.The growth was led by FMCG and Staples segments, while the General Merchandise and Apparel segments remained weak as expected.The company’s gross margins stood at 14%, down 91bps YoY, signifying stress in high-margin general merchandise and the apparel business.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts Ltd. - Discretionary Still on the Path to Full Recovery

Thematic (Sector/Industry)

<ul><li>We recently interacted with numerous store managers and companies to assess the festive performance and demand in discretionary categories</li><li>Despite a promising start to the festive season, most categories (excluding jewellery and travel) seem to have hit the snooze button</li><li>Several factors contribute to this, including (1) the normalisation of ticket sizes and purchase frequencies, (2) weak footfalls (on a per sq foot basis), and (3) a trend towards downtrading</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We recently interacted with numerous store managers and companies to assess the festive performance and demand in discretionary categoriesDespite a promising start to the festive season, most categories (excluding jewellery and travel) seem to have hit the snooze buttonSeveral factors contribute to this, including (1) the normalisation of ticket sizes and purchase frequencies, (2) weak footfalls (on a per sq foot basis), and (3) a trend towards downtradingContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Festive temperature check: Festive mood sombre

India

Avenue Supermarts Ltd. (ASL) owns and operates hypermarkets and supermarkets. The Company offers products such as garments, footwears, toys and games, bed and bath linen, stationery, grocery, household, and electronic products. ASL operates throughout India.

Avenue Supermarts Ltd (DMART IN)

Avenue Supermarts - Margin Pressure Continues

Avenue Supermarts: Revenue grew by 18.5% (four-year CAGR: 19.9%) Sales density remains sub-par vis-a-vis the pre-pandemic level (~INR35.3k/sq ft in...

HDFC Securities

Avenue Supermarts Ltd - General Merchandise & Apparel Yet to Recover

Financial Performance: DMART Q2FY24 reported consolidated revenue growth of 19% YoY (20% on a 4-Year CAGR basis) to Rs 12,624 Cr.

Axis Direct

Avenue Supermarts Ltd. - General Merchandise & Apparel Yet to Recover

The company’s gross margins stood at 15.2%, down 115bps YoY, signifying stress in high-margin general merchandise and the apparel business.

Axis Direct

Avenue Supermarts Ltd. - Discretionary Still on the Path to Full Recovery

DMART Q4FY23 reported consolidated revenue growth of ~21% YoY (19% on a 3-Year CAGR basis) to Rs 10,594 Cr. The growth was led by FMCG and Staples...

Axis Direct

Festive temperature check: Festive mood sombre

We recently interacted with numerous store managers and companies to assess the festive performance and demand in discretionary categories

HDFC Securities