Street still bets big on DMart; store expansion, new format growth triggers

What makes it stand out for investors is its consistent growth in sales, margins and net profit, driven by strong demand from consumers

Avenue Supermarts’ stock recently hit its all-time high levels, and in the process crossed the $14.75-billion mark (Rs 1 trillion) in this week’s trade. The stock, which has already become a multi-bagger, up five-fold, from its IPO price, has gained about 42 per cent from the start of the year.

The re-rating of some of the consumer names over the past couple of quarters, coupled with the fact that the stock is now part of MSCI, has added to the lure. At the fundamental level, however, the Street is putting its faith on the well-run company with high earnings visibility.