It has rallied over 21% in last 3 sessions and surged 3 times over its issue price
The recently-listed Avenue Supermarts, which runs D-Mart stores, has continued its winning streak. On Monday, its market capitalisation (m-cap) crossed Rs 50,000 crore after the stock hit a new high of Rs 807 on bourses in the morning trade.
At the close of the session, the stock settled at Rs 775.5 per share, clocking an m-cap of Rs 48,397.75 crore.
The stock has surged nearly three times over its issue price of Rs 299. The stock got listed on stock exchanges on March 21.
In past three trading sessions, the stock has rallied over 21% after Avenue Supermarts said Crisil upgraded ratings on the bank facilities of the company.
The company, promoted by veteran ace investor Radhakishan Damani, rose as much as 7.4% in the morning trade to hit fresh a 52-week high of Rs 806.90. The surge has pushed Damani to the stratosphere of India's richest 20 club.
US-based brokerage JPMorgan in a report released on Friday initiated coverage on the stock with a "neutral" rating. Any minor lapse in the near term and substantial investments in e-commerce (earnings dilutive) could strain valuation multiples, the brokerage said, adding that the prevailing valuations were factoring in the long-term growth opportunities.
According to a Mumbai-based analyst, a gradual uptick in consumer sentiment after the demonetization and upcoming GST could drive the retail sector in the immediate future.
D-Mart, India's most profitable supermarket chain, follows a unique ownership model and offers more of staple consumer products which have very high inventory turnover.
Last week, Crisil had upgraded its rating on the company's long-term bank facilities and non-convertible debentures to 'Crisil AA/Stable' from 'Crisil AA-/Positive'.
"Avenue Supermarts's share is expensive at current valuations, but any dip from current level should be used as a buying opportunity from an investment perspective of 3-5 years," said another analyst.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Radhakishan Damani")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}