Avenue Supermarts: DMart stock surge boosts Radhakishan Damani’s wealth by ₹2,695 crore

Avenue Supermarts, which operates the retail chain of DMart, saw its shares zoom 5.8% to hit a new one-year high of ₹4,715 apiece in today's trading before finishing the trade at ₹4,645 apiece, up 4.13%. 

Investor sentiment was buoyed by the company's impressive business update for the fourth quarter of FY24, which garnered positive attention from market participants. The upbeat performance of Avenue Supermart's shares has significantly boosted the notional value of stakes held by Radhakishan Damani and his family, who are the promoters of the company.

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As per the Trendlyne shareholding data, Radhakishan Damani held 149,848,238 shares, or a 23.03% stake in the company at the end of Q3FY24. As DMart shares jumped sharply, the value for Radhakishan Damani increased by 2,695 crore to reach ₹69,526 crore.

Radhakishan Damani publicly holds 14 stocks with a net worth of over ₹211,122.1 crore, as per Trendlyne. Furthermore, the valuation of shares held by Shrikantadevi Radhakishan Damani, spouse of Radhakishan Damani, witnessed an increase of ₹113 crore today. 

At the end of Q3FY24, Shrikantadevi Radhakishan Damani held 6,500,000 shares, representing a 1% stake in the company. Overall, the promoter group owns a significant portion of 74.7% of DMart, Trendlyne data showed. Notably, DMart's market capitalisation crossed the ₹3 lakh crore mark in today's trade after 26 months. 

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The company on Wednesday reported a 20% improvement in its standalone revenue from operations at ₹12,393.46 crore, driven by a 7% growth in revenue per store to ₹140.4 crore and a 13% year-on-year (YoY) increase in store additions.

The revenue per sq. ft. has grown around 5% YoY to ₹33,451 per sq. ft., and hence, the gap between revenue per store and revenue per sq. ft. stood at 2%, said domestic brokerage firm Motilal Oswal.

In a recent report, global brokerage firm CLSA initiated coverage on DMart with a 'buy' rating and a target price of ₹5,107 per share, citing promising growth opportunities. CLSA projects the total addressable market (TAM) to reach $2.3 trillion over the next 25 years, with DMart's market share increasing from less than 1% to 5%.

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The brokerage firm anticipates DMart's stores to grow over threefold by FY34, expanding from 341 to cater to both existing and new states. 

CLSA further highlighted that if DMart achieves a store-to-population density similar to Walmart, which has one store per 100,000 people in the US, the potential for over 7,000 DMart stores in urban India within the next 25 years is significant.

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