Avenue Supermart, operator of Dmart entered into trading four years ago. The shares of the company are growing tremendously since its listing and will further grow in the future.
Also, as per the analysis, the company will provide long-term benefits to the investors. However, in the short-term, the share price may increase or decrease.
On March 5 the shares touched the high mark in 52 weeks. However, it declined by 15 percent in the next 21 days.
On March 21, 2017 shares were listed for the first time with an issue price of Rs 299. It grew by more than double its price on a listing day. The shares moved up by 800 percent from its issue price.
Additionally, the experts suggested that the investor has an opportunity that was missed years back to gain long-term growth. The value at the end of the investment time will provide a 20 percent rate of return.
Furthermore, the company has the potential to grow better in the upcoming 3-5 years. It will gain better revenue and profits in the medium term that will have a positive impact on its valuation.
Moreover, the company has tough competition with online stores for instance Big Basket. Also, Amazon made an entry into the grocery market which will raise the competition.
As per the valuations, the company is slightly pricey when compared with its competitors. However, experts believe that the valuation is rational.
The company grew tremendously since its listing. It is offering double-digit returns and categorized under blue-chip companies.
Though the price of the stock is costly the value stands worthwhile in its niche.
Thus, the experts advise the investors to include the stock in the portfolio to earn long term benefits
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