Avenue Supermarts attracts shoppers after strong Q1 outcome

Avenue Supermarts advanced 3.4% to Rs 945 at 09:41 IST on BSE after net profit rose 47.56% to Rs 174.78 crore on 36.27% rise in total income to Rs 3620.96 crore in Q1 June 2017 over Q1 June 2016.

The result was announced on Saturday, 22 July 2017.

Meanwhile, the S&P BSE Sensex was up 85.52 points or 0.27% at 32,114.41

On the BSE, 1.17 lakh shares were traded in the counter so far, compared with average daily volumes of 2.31 lakh shares in the past one quarter. The stock hit a high of Rs 964.25 in intraday trade so far, which is a record high for the counter. The stock had hit a low of Rs 930.25 so far during the day. The stock hit a record low of Rs 558.75 on 21 March 2017.

The large-cap company has equity capital of Rs 624.08 crore. Face value per share is Rs 10.

Avenue Supermarts' company's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 29.2% to Rs 303 crore in Q1 June 2017 over Q1 June 2016. EBITDA margin fell to 8.4% in Q1 June 2017 from 8.8% in Q1 June 2016.

Avenue Supermarts' said that the company follows everyday low cost - everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive price, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.

Shares of Avenue Supermarts had debuted at Rs 604.40 on BSE, a premium of 102.14% to the initial public offer (IPO) price of Rs 299 per share on 21 March 2017. The stock had settled at Rs 640.75 on that day, a premium of 114.29% over its IPO price.

The IPO of Avenue Supermarts closed with strong response from investors. The IPO received bids for 464.08 crore shares compared with 4.43 crore shares on offer. The IPO was subscribed 104.59 times. The issue opened for bidding on 8 March 2017 and closed on 10 March 2017.

Avenue Supermarts is a Mumbai-based company, which owns and operates D-Mart stores. D-Mart is an emerging national supermarket chain that offers customers a range of home and personal products under one roof. The company offers a wide range of products with a focus on Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories. As of 30 June 2017, the company had 132 stores with Retail Business Area of 4.1 million sq.ft. across Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

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