The stock fell 5.6 per cent to end at Rs 2,401 in secondary market trade. A further 1.5 million shares meant for retail investors will be auctioned on Monday.
Following the share sale, Avenue Supermarts, which operates the Dmart retail chain, will become compliant with the 25 per cent public shareholding norms
The Radhakishan Damani-promoted company is now more valuable than Nestle India and Bajaj Finserv, according to the BSE data
Firm's unit economics remain strong amid competitive intensity
The company is currently valued at Rs 1.41 trillion and is among top 20 most valued firms in the country
The company reported strong revenue, Ebitda growth in Q3, but analysts sceptical of this trend sustaining
The stock was trading close to its all-time high of Rs 2,010, hit on November 8, 2019
Top line grows nearly 24 per cent despite weak consumer sentiment; EBITDA margins in Q3 for DMart came in at 8.8 per cent
Nifty has for now shown resistance at its triple top level near 12,300 levels
The valuations of Reliance Retail have been arrived at using both discounted cash flow method as well as market capitalisation of comparable companies in the listed space
The share sale could come at a time when companies in India are battling weaker consumer demand as Asia's third-largest economy slows
At Rs 890, IRCTC is currently trading 2.8 times above the issue price of Rs 320
Although a confirm breakout is yet to take shape, still the Delta Corp counter is exhibiting upside on the charts as volumes spike
Avenue Supermarts, which runs the DMart chain of stores, Adani Green Energy, Berger Paints, Blue Star, Indraprastha Gas, Manappuram Finance, SBI Life Insurance also hit record high levels on Friday
Ebitda at Rs 515 crore was also below Street estimates of Rs 527 crore.
Stock up over 20 per cent in three months, but company's aggressive store expansion and low-pricing strategy also suggests medium-term growth levers intact
Analysts tracking the consumer and retail sectors say the five firms have deployed specific market strategies to push their top-line growth at the same time keeping a tight control on costs
Net profit margin in Q1 stood at 5.8 per cent, higher than the 5.5 per cent reported a year ago and ahead of the 4.0-4.8 per cent range seen in the last three quarters
Margin pressure weighs on valuation of DMart stock
While Noronha did not specify a number, analysts expect DMart to launch around 30 stores in FY20