R K Damani's stock drops 4 per cent despite stellar Q4 performance - Is this a sign of a great business facing strong headwinds?

The shares of the company saw a spurt in volume by more than 5 times on BSE. 

Avenue Supermarts, also known as D-mart, announced its Quarterly Results (O4) and annual results (FY23). The company reported excellent numbers. Details below:   

The net sales of the company increased by 20.57 per cent to Rs 10,594.11 crore and net profit increased by 7.81 per cent to Rs 460.10 crore in Q4FY23 over Q4FY22. In FY23, the net sales increased by 38.30 per cent to Rs 42,839.56 crore, EBITDA of Rs. 3,659 crore; growth of 46.3 per cent and the net profit increased by 59.36 per cent to Rs 2,378.51 over FY22. The basic EPS for FY23 stood at Rs 39.46, as compared to Rs 24.95 for FY22.   

The company's rapid expansion was evident as they successfully opened 18 new stores in Q4FY23, bringing the total number of stores added in the fiscal year to an impressive 40. This ambitious growth strategy demonstrates the company's aggressive approach and sets the stage for even more remarkable figures in the forthcoming years.  

DSIJ offers a product 'Flash News Investment Weekly' with recommendations profit-making ideas for short term trading and long term investments based on research and analysis to help subscribers make informed investment decisions. If this interests you, then do download the product details pdf here

Avenue Supermarts Ltd (BSE Script Code: 540376; NSE Script Code: DMART) is primarily engaged in the business of organized retail and operates supermarkets under the brand name D-Mart. The shares of the company saw a spurt in volume by more than 5 times on BSE. 

The stock gave multibagger returns of over 500 per cent since that stock was listed on the exchanges (Listing date: March 24, 2017).

Today, shares of Avenue Supermarts Ltd plunged 4.87 per cent to Rs 3,502 per share from its previous closing of Rs 3,680.25. Investors should keep an eye on this stock.