Avenue Supermarts Ltd.
ISIN: INE192R01011 • Market Cap: ₹2.60 Lakh Cr
The 5-Pillar Quality Audit for Avenue Supermarts Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (7.6%), Return on Capital Employed (16.4%), and equity compounding (12.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.04 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (11.9%) and 3Y PAT CAGR (6.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 84.88 vs PEG of 5.94 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.5%, backed by 18.0% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.04)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Consistent Market Standing (Large Cap)
Established player in the Consumer Services sector with an overall fundamental quality score of 66/100.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 84.88)
A steep valuation multiple of 84.88 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Consumer Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Services space.
Quantitative Strategy Eligibility
Checking DMART against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 66/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Services Sector Peer Comparison
Compare DMART directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Avenue Supermarts Ltd. (DMART)Current | 66/100 | ₹2.60 Lakh Cr | 84.88 | 16.4% | 0.04 | — |
| Eternal Ltd. (ETERNAL) | 61/100 | ₹3.09 Lakh Cr | 713.64 | 2.9% | 0.00 | View |
| Trent Ltd. (TRENT) | 74/100 | ₹1.57 Lakh Cr | 86.78 | 29.6% | 0.07 | View |
| Lenskart Solutions Ltd. (LENSKART) | 63/100 | ₹1.11 Lakh Cr | 169.67 | 8.4% | 0.03 | View |
| Indian Hotels Co. Ltd. (INDHOTEL) | 75/100 | ₹1.03 Lakh Cr | 48.02 | 16.0% | 0.00 | View |
| FSN E-Commerce Ventures Ltd. (NYKAA) | 69/100 | ₹93,800 Cr | 366.22 | 29.4% | 0.53 | View |
Frequently Asked Questions: Avenue Supermarts Ltd.
Q:What is the 5-Pillar Fundamental Score for Avenue Supermarts Ltd. (DMART)?
Avenue Supermarts Ltd. has a RupeeTools Fundamental Score of 66/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (64/100), Financial Health (87/100), Growth (62/100), Valuation (25/100), and Ownership Quality (82/100).
Q:Is DMART fundamentally strong for long-term investment?
DMART currently holds a moderate quality rating of 66/100. While it operates in the Consumer Services sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does DMART pass the Coffee Can Investing filter?
Yes! DMART satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does DMART compare against other Consumer Services peers?
Within India's Consumer Services sector, DMART trades at a P/E of 84.88 and generates an ROCE of 16.4%. Compare its 5-Pillar score of 66/100 against top sector peers like Eternal Ltd. (61/100), Trent Ltd. (74/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.