In D-Mart shopping cart, valuations look justified

Low-cost operations and merchandise could set the cash registers ringing

In a sector where companies are struggling to generate consistent profits, Avenue Supermarts stands as an outlier. The company, which runs India's most profitable supermarket chain under D-Mart brand, has reported net profits that have grown in each of the last five financial years going back to FY12. If one were to annualise the reported net profit for nine months of FY17, it is well on its way to topping the Rs 500-crore mark for the financial year. 

A consistent track record of profits, a strong management team, and an obsession with keeping costs to the minimum are seen as best