The Discounted Cash Flow (DCF) valuation of Avenue Supermarts Ltd (DMART.NS) is 2,457.35 INR. With the latest stock price at 4,199.90 INR, the upside of Avenue Supermarts Ltd based on DCF is -41.5%.

Is DMART.NS a buy or a sell?

Based on the latest price of 4,199.90 INR and our DCF valuation, Avenue Supermarts Ltd (DMART.NS) is a sell. Selling DMART.NS stocks now will result in a potential gain of 41.5%.

	Range	Selected
WACC / Discount Rate	10.3% - 11.7%	11.0%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	2,009.25 - 3,199.31	2,457.35
Upside	-52.2% - -23.8%	-41.5%

4,199.90 INR

Stock Price

2,457.35 INR

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

DMART.NS DCF Valuation: Revenue & Expenses Forecast

(INR in millions)		Projections

	03-2024	03-2025	03-2026	03-2027	03-2028	03-2029

Revenue	507,888	594,632	674,222	780,453	877,843	1,006,974
% Growth	19%	17%	13%	16%	12%	15%

Cost of goods sold	(436,511)	(485,511)	(522,971)	(575,102)	(614,523)	(669,674)
% of Revenue	86%	82%	78%	74%	70%	67%

Selling, G&A expenses	(25,532)	(29,893)	(33,894)	(39,235)	(44,130)	(50,622)
% of Revenue	5%	5%	5%	5%	5%	5%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(11,231)	(13,150)	(14,910)	(17,259)	(19,413)	(22,268)
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(9,257)	(17,106)	(26,521)	(38,535)	(51,716)	(68,448)
Tax rate	27%	26%	26%	26%	26%	26%

Net profit	25,356	48,973	75,927	110,323	148,060	195,962
% Margin	5%	8%	11%	14%	17%	19%