Avenue Supermarts, the company behind the DMart retail chain, witnessed a remarkable 5.8% surge in its shares, hitting a new one-year high of ₹4,715 during today’s trading session before closing at ₹4,645, up 4.13%.
Investor optimism was fueled by the impressive business update for the fourth quarter of FY24 released by Avenue Supermarts, drawing positive attention from the market. This surge significantly elevated the notional value of stakes held by Radhakishan Damani and his family, who are the company’s promoters.
According to Trendlyne shareholding data, Radhakishan Damani holds a 23.03% stake in the company, equivalent to 149,848,238 shares as of the end of Q3FY24. With the sharp increase in DMart shares, Damani’s wealth surged by ₹2,695 crore to reach ₹69,526 crore.
Publicly holding 14 stocks with a combined net worth of over ₹211,122.1 crore, Radhakishan Damani’s wealth is notable, as per Trendlyne. Additionally, the value of shares held by Shrikantadevi Radhakishan Damani, Damani’s spouse, saw an increase of ₹113 crore today.
Shrikantadevi Radhakishan Damani held 6,500,000 shares, constituting a 1% stake in the company as of the end of Q3FY24. Overall, the promoter group holds a significant share of 74.7% of DMart, as per Trendlyne data.
DMart’s market capitalization crossed the ₹3 lakh crore mark in today’s trade after 26 months.
The company reported a notable 20% improvement in standalone revenue from operations, reaching ₹12,393.46 crore, driven by a 7% growth in revenue per store and a 13% YoY increase in store additions.
Furthermore, global brokerage firm CLSA initiated coverage on DMart with a ‘buy’ rating and a target price of ₹5,107 per share, citing promising growth prospects. CLSA projects DMart’s market share to increase from less than 1% to 5% over the next 25 years, with significant expansion opportunities.
CLSA anticipates DMart’s store count to grow over threefold by FY34, reaching 341 stores, catering to both existing and new states. Additionally, the brokerage firm highlighted the significant potential for DMart’s expansion, with the possibility of over 7,000 stores in urban India within the next 25 years if the company achieves a store-to-population density similar to Walmart’s in the US.
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