Billionaire Radhakishan Damani-owned Avenue Supermarts crossed Rs 60,000 crores market capitalization on Wednesday.
Avenue Supermarts, which saw a stellar listing on the exchanges earlier this year, has more than tripled investor wealth in less than 5 months, after the stocks soaring to an all time high of Rs 999 today. Billionaire Radhakishan Damani-owned Avenue Supermarts crossed Rs 60,000 crores market capitalization on Wednesday. The stock had made a mega entry in the market with a bumper listing pricing of Rs 606 at the NSE as against its issue price of Rs 299 per share on March 21, 2017. As compared to the listing price of Rs 606, the stocks have registered gains of more than 60%.
Avenue Supermarts, which owns DMart chain of supermarkets had reported a 47.60 per cent year-on-year (YoY) rise in net profit at Rs 174.77 crore for the June quarter. Total income also registered gains of more than 36 per cent.
At that time Neville Noronha, CEO & Managing Director, Avenue Supermarts said, “We have transitioned into the GST regime with minimal migration challenges. While supplies from certain vendors could see a short term disruption, we are optimistic that GST will create excellent opportunities for small and medium businesses to become preferred suppliers to organized retail in the near to long term.”
Several analysts had recommended subscribing to issue given the company’s strong financial and operational profile, and its promising growth record over the years.
Radhakishan Damani, promoter of the company is a veteran stock market trader and investor who had been in the Forbes list of wealthiest people.
D-Mart has a strong presence in Maharashtra and Gujarat, and also operates stores in Telangana, Karnataka, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, NCR, Daman and Rajasthan.
The company maintains low-cost operations, owns the stores rather than renting them and thus saving on rental costs, keeps improving product assortment based on its own data analytics, and seems to saturate the territory and then achieve profitability. Analysts say it follows the same business approach as Wal Mart of the US.