D-Mart hits a record high

Avenue Supermarkets or D-Mart hit a record high today morning at Rs.1663.80, up 4.5%. Its market cap stands at a jaw dropping Rs.1,02,850 crore.

The market is thrilled with its Q1FY19 performance. It reported a 43% (YoY) jump in net profit at Rs.251 crore on a good 27% rise in revenue at Rs.4559 crore.

Its EBITDA came in at Rs.423 crore, up 39% and margins bettered from 8.4% to 9.3%.

Following this performance, JP Morgan maintained the rating at ‘Underweight’ but raised target price to Rs 1,175 from Rs 1,050. Though valuations have far exceeded the fundamentals, the optimism remains and our Editor SP Tulsian has advised to book profits at Rs.1695 levels.