D-Mart’s parent company Avenue Supermarkets Ltd joined the elite club bandwagon on Monday with Rs. 1 trillion market capitalisation after its share price reached Rs. 1,608.50, 1% up from its previous close on BSE.
The stock has gained 20% in last three weeks while it has gained 35% in this year till date. The scrip has jumped 373.86% from its offer price of Rs 299 since its debut in March 2017.
The surge in share has come after D-Mart promoter Radhakishan Damani sold nearly 6.2 million shares or 1% stake in Avenue Supermarts last week to ensure that the firm meets the minimum public shareholding norms. Moreover, the company has also made it in the MSCI India Domestic and MSCI India Domestic Small Cap Index, with effect from 1 June.
A spokesperson from investment service firm Geojit Financial Services said,
D-Mart has a strong track record of high growth and profitability in all of its performance matrices. We expect high growth to continue aided by store additions, change in strategy, e-com, debt reduction and tailwinds from GST. As a result, we expect a high premium to be maintained in the medium-term.
In terms of market capitalization, Avenue Supermarkets competes with leaders such as Power Grid, UltraTech Cement, Mahindra & Mahindra and Wipro. The firm has reported a 72.9% percent year on year growth in net profit at Rs. 167 crores for March quarter.