Wondering why D-Mart is underperforming? Heres why!

One of the many reasons for this strong performance by the stock in the last three years has been low float. However, in recent times, the stock is seen underperforming

Avenue Supermarts, which owns & operates retail chain D-Mart, reported total revenue of Rs 8,786 crore for the quarter ended March 31, 2022, as against Rs 7,412 crore in the same period last year. EBITDA in Q4FY22 stood at Rs 739 crore compared to Rs 613 crore in the corresponding quarter of last year. EBITDA margin stood at 8.4 per cent in Q4FY22 as compared to 8.3 per cent in Q4FY21.  

Net profit stood at Rs 427 crore for Q4FY22 as compared to Rs 414 crore in the corresponding quarter of last year. PAT margin stood at 4.8 per cent in Q4FY22 as compared to 5.5 per cent in Q4FY21.   

The total revenue for FY22 stood at Rs 30,976 crore as compared to Rs 24,143 crore in the same period last year. Earnings before interest, tax, depreciation & amortisation (EBITDA) in FY22 stood at Rs 2,499 crore as compared to Rs 1,743 crore during FY21. EBITDA margin stood at 8.1 per cent in FY22 as compared to 7.2 per cent in FY21. Its net profit stood at Rs 1,492 crore for FY22 as against Rs 1,099 crore in FY21. Besides, the PAT margin stood at 4.8 per cent in FY22 as compared to 4.5 per cent in FY21.  

Meanwhile, the stock has delivered a stunning gain of over 150 per cent in the last three years while in the last one year, it added 13.11 per cent. One of the many reasons for this strong performance by the stock in the last three years has been low float. However, in recent times, the stock is seen underperforming as FIIs have been selling while among the mutual funds, Axis holds half of the DIIs holding.   

FIIs' stake was about 10.27 per cent as per the quarter ended September 2020 and as per the quarter ended March 2022, FIIs hold 8.83 per cent only. Besides, Axis Mutual Fund holds nearly 3.56 per cent stake as per the quarter ended March 2022.