INSUBCONTINENT EXCLUSIVE:
D-Mart owner Avenue Supermarts witnessed its second biggest drop on Friday since listing in March 2017
Shares of the company closed 5.24 per cent down at Rs 1,416.85 after reports emerged that founder Radhakishan Damani will sell some stake in
the company.
Avenue Supermarts had witnessed the biggest fall of 5.48 per cent on April 17 last year.
Damani will offload 62.40 lakh shares,
or 1 per cent equity, between May 21 and June 14, according the report
He will sell shares to achieve minimum public shareholding requirement.
At the current market price, the value of 1 per cent equity of
Avenue Supermarts stands at over Rs 880 crore.
The promoter and promoter group held 82.20 per cent stake in the company as of March 31,
2018.
Avenue Supermarts (D-Mart) on Saturday reported 72.9 per cent year-on-year (YoY) rise in net profit at Rs 167 crore for the March
The food and grocery retailer had reported Rs 97 crore profit in the year-ago quarter
Total revenue for the quarter came in at Rs 3,810 crore, up 22.5 per cent YoY
The company had clocked Rs 3,111 crore sales in the same period last year
Ebitda for the quarter rose to Rs 294 crore in March quarter from Rs 208 crore in the corresponding quarter of last year
Supermarts with a target price of Rs 1200
1,003.
Traders need to distinguish between promoters selling the shares to encash profits from selling to meet regulatory obligations, said
consider this fall as an opportunity to go long as promoter is selling only to meet regulatory requirement
Technically speaking, this counter is in a strong uptrend with support placed around Rs 1,300 level
Investors can make use of this opportunity to go long around these levels
