Avenue Supermarts (DMART IN) – Analyst Meet Update – Premium valuation meets structural growth challenges – HOLD
Published on 28 Jul 2026
D-Mart delivered a modest 6.3% EBITDA CAGR over the past four quarters, although we expect the EBITDA growth to recover to double digits from 2QFY27 aided by a favourable base. We factor in 15-16% bill cuts growth, ~2% average bill value growth and ~20bps EBITDA margin contraction over FY26-28, translating into a 14.4% EPS CAGR. While earnings growth is likely to improve versus the past two years, accelerating capex, structurally lower ROE and steep valuation of 65x FY28E EPS limit scop of re-rating over medium term. Retain HOLD.
