retail
Avenue Supermarts
DMART · Nifty 50
₹4,287.5
Price 2026-06-17
At a Glance
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Avenue Supermarts scores 80/100 on fundamentals (strong). Avenue Supermarts: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 80/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 11.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 11.59% is moderate efficiency-driven and stable. Net margin of 4.2% × asset turnover of 2.27x × leverage of 1.2x.
What This Means
Net margin of 4.2% means the company keeps ₹4.2 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 2.27x means the company efficiently uses its assets to generate revenue. Leverage of 1.2x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
14.8%
Operating
5.9%
Net
4.2%
Gross margin 14.8% → operating margin 5.9% → net margin 4.2%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.2x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 31.6x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.5x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin negative at -1.0% — spending more than earning. Check capex cycle.
Peer Comparison
Key Watchpoints
Breaks above ₹4502 (+5%)
Trend reversal confirmation
Breaks below ₹4073 (-5%)
Further downside risk
PE reverts to 5Y median of 87.7
Valuation normalization
Retail sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 0 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes