Avenue Supermarts Ltd

Avenue Supermarts maintains a conservative capital structure with a debt-to-equity ratio of 0.10 and a current ratio of 1.98, indicating strong short-term liquidity coverage. The balance sheet shows total equity of 244.64 billion INR against total liabilities of 50.60 billion INR, with long-term debt standing at 24.25 billion INR. Despite holding 3.04 billion INR in cash and equivalents, the company reports negative net cash after subtracting total debt, a key flag noted in the risk assessment. Operating cash flow stands at 34.67 billion INR, which is significantly offset by capital expenditures of 41.13 billion INR, resulting in negative free cash flow of 1.06 billion INR.

Profitability metrics demonstrate efficient capital utilization, with a return on equity of 12.14% and a return on assets of 10.06%. The company generated a gross profit of 103.61 billion INR on revenues of 688.21 billion INR, leading to an operating income of 41.50 billion INR and net income of 29.70 billion INR. These returns suggest a robust operational model within the retail sector, although specific cohort median comparisons are not provided in the input data to benchmark relative performance.

Revenue concentration and geographic exposure details are not explicitly broken down in the available segments or geography sections. The company operates as a broadline retailer, implying a diversified product mix, but specific segment revenue contributions are absent from the provided data. The lack of detailed segment data prevents a granular analysis of revenue drivers by product category or region.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without five-year annual or eight-quarter quarterly revenue and net income trends, it is not possible to assess the momentum of revenue growth or earnings expansion. The current financial snapshot provides a static view of performance, highlighting the scale of operations but not the rate of change.

Risk factors include medium liquidity risk and low dilution risk. The primary concern is the negative net cash position, which arises from the combination of long-term debt and relatively low cash reserves. The dilution risk is assessed as low, supported by the fact that basic and diluted shares outstanding are identical at 652.25 million, indicating no significant in-the-money options or convertible securities impacting the share count.

Recent events and market sentiment are reflected in analyst estimates, with a mean price target of 4,515.20 INR and a median target of 4,510.00 INR. The mean recommendation is 2.90, suggesting a neutral to slightly positive outlook, with four strong buys, six buys, and twelve holds. These estimates indicate a range of expected future performance, with high and low targets at 5,723.00 INR and 3,100.00 INR respectively.

Revenue grew at a 25.2% CAGR over four years, demonstrating strong top-line expansion momentum.

Net margins of 4.4% rank in the top quartile of the food retail cohort.

A debt-to-equity ratio of 0.03 is well below the 0.53 cohort median, reflecting a conservative capital structure.

Cash conversion of 4.87 is best-in-class compared to the 1.45 cohort median.

Net income growth slowed to just 6.8% year-over-year, indicating weakening profitability momentum.

Return on equity of 3.0% lags the 5.2% cohort median, suggesting inefficient capital utilization.

Analysts assign a hold rating with negligible -0.7% upside, reflecting limited near-term price appreciation potential.

Revenue INR 176.84B, +18,9% YoY; Operating income +29,8% YoY.

• ▍Revenue INR 176.84B, +18,9% YoY
• ▍Operating income +29,8% YoY
• ▍Net income +19,2% YoY
• ▍Net margin 3.7%

Revenue INR 181.01B, +13,3% YoY; Operating income +20,8% YoY.

• ▍Revenue INR 181.01B, +13,3% YoY
• ▍Operating income +20,8% YoY
• ▍Net income +18,3% YoY
• ▍Net margin 4.7%

Revenue INR 166.76B, +15,4% YoY; Operating income +8,4% YoY.

• ▍Revenue INR 166.76B, +15,4% YoY
• ▍Operating income +8,4% YoY
• ▍Net income +3,9% YoY
• ▍Net margin 4.1%

Revenue INR 163.60B, +16,3% YoY; Operating income +3,8% YoY.

• ▍Revenue INR 163.60B, +16,3% YoY
• ▍Operating income +3,8% YoY
• ▍Net income −0,1% YoY
• ▍Net margin 4.7%

Revenue INR 148.72B; Operating income INR 7.14B.

• ▍Revenue INR 148.72B
• ▍Operating income INR 7.14B
• ▍Net margin 3.7%

Revenue INR 159.73B; Operating income INR 9.89B.

• ▍Revenue INR 159.73B
• ▍Operating income INR 9.89B
• ▍Net margin 4.5%

Revenue INR 144.44B; Operating income INR 8.86B.

• ▍Revenue INR 144.44B
• ▍Operating income INR 8.86B
• ▍Net margin 4.6%

Revenue INR 140.69B; Operating income INR 10.28B.

• ▍Revenue INR 140.69B
• ▍Operating income INR 10.28B
• ▍Net margin 5.5%

Revenue INR 688.21B, +15,9% YoY; Operating income +14,3% YoY.

• ▍Revenue INR 688.21B, +15,9% YoY
• ▍Operating income +14,3% YoY
• ▍Net income +9,7% YoY
• ▍Free cash flow −166,3% YoY
• ▍Net margin 4.3%

Revenue INR 593.58B, +16,9% YoY; Operating income +7,4% YoY.

• ▍Revenue INR 593.58B, +16,9% YoY
• ▍Operating income +7,4% YoY
• ▍Net income +6,8% YoY
• ▍Free cash flow −70,3% YoY
• ▍Net margin 4.6%

Revenue INR 507.89B, +18,6% YoY; Operating income +12,5% YoY.

• ▍Revenue INR 507.89B, +18,6% YoY
• ▍Operating income +12,5% YoY
• ▍Net income +6,6% YoY
• ▍Free cash flow −33,3% YoY
• ▍Net margin 5.0%

Revenue INR 428.40B, +38,3% YoY; Operating income +49,6% YoY.

• ▍Revenue INR 428.40B, +38,3% YoY
• ▍Operating income +49,6% YoY
• ▍Net income +59,4% YoY
• ▍Free cash flow +294,4% YoY
• ▍Net margin 5.6%