Avenue Supermarts: All engines firing

Strong show on revenues as well as earnings will help sustain high valuations

The results of Avenue Supermarts for the March 2017 quarter (Q4) should put to rest concerns about its rich valuations expressed by some market participants.
 
The strong same-store sales growth (SSSG) of more than 20 per cent, over 40 per cent growth in both revenues as well as net profits (over the March 2016 quarter), and a stable Ebitda (earnings before interest, taxation, depreciation, and amortisation) margin were the key highlights of the company’s results.
 
The Avenue Supermarts stock, which rose to its all-time high on Friday in anticipation of strong results, currently trades at 52 times the