Avenue Supermarts’ stock touched an all-time high in early trade after the firm reported over 100% rise in consolidated profit for the quarter ended September.Shares of Avenue Supermarts touched a record high of Rs 5,899.9, rising 10.7 per cent against the previous close of Rs 5,329.65 on the Bombay Stock Exchange (BSE).
Total 0.77 lakh shares of the firm changed hands amounting to turnover of Rs 44.11 crore on the BSE.
Market cap of the firm rose to Rs 3.52 lakh crore on BSE.
The share hit 52-week low of Rs 1,949.30 on October 19, 2020.
The large-cap stock has gained 28.98% in the last 7 days. Earlier, the stock opened with a gain of 5.82% at Rs 5,640 on BSE.
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Avenue Supermarts share is trading higher than 5 day, 20 day, 50 day, 100 day, and 200 day moving averages.
The stock has gained 176% in one year and risen 97.96% since the beginning of this year.
The firm reported a consolidated profit of Rs 418 crore in the September quarter compared with Rs 199 crore in the corresponding quarter of last year.
Consolidated revenue in Q2 climbed 46.79 per cent YoY to Rs 7,789 crore from Rs 5,306 crore in the same period last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) in Q2 came in at Rs 669 crore compared with Rs 330 crore in the corresponding quarter of last year.
EBITDA margin climbed 240 basis points year-on-year (YoY) to 8.6 per cent in the September quarter compared with 6.2 per cent in the year-ago quarter. Profit after tax (PAT) margin rose 160 basis points to 5.3 per cent from 3.7 per cent YoY.
Morgan Stanley has downgraded the stock to underweight post Q2 earnings. It has given a target price of Rs 4,338. The brokerage said the earnings missed estimates but were ahead of consensus.
“Given strong trailing stock performance and relative preference within our coverage, we tactically move to underweight and await a better price for re-entry,” the brokerage said.
Credit Suisse said the earnings were largely in-line and full normalcy has been restored after the 2nd Covid-19 wav.
The firm continues to execute well on its proven “everyday low price” strategy.
However, the brokerage has maintained under-priced stance on its extremely stretched valuation at 142x FY23E P/E.
