FINANCIAL MODEL OF DMART

CONTENT

1 DASHBOARD
2 INCOME STATEMENT
3 BALANCE SHEET
4 CASH FLOW STATEMENT
5 Schedule
6 RATIO ANALYSIS
7 Assumptions
8 DCF
9 COMPARABLE COMPANY VALUATION
10 Stock Performance
11 DUPONT ANALYSIS
12 ALTMAN'S Z SCORE ANALYSIS
 Market Capital Current Price ROE Stock P/E Book Value Face Value PB Ratio
329714 Cr. ₹ 5,066.00 14.60% 123% ₹ 287.00 ₹ 10.00 20.28%

EBIT EBITDA NOPAT Shareholding Pattern

0.07% 8.09%
4000 3000.00
2500.00
3000 2000.00 7.95% 2019
2000 1500.00 2020
1000.00 9.22%
2021
1000 500.00
2022
0.00
0 74.64% 2023
2019 2020 2021 2022 2023
2019 2020 2021 2022 2023
EBIT EBITDA Nopat

Sales EPS Stock Performance

2… 1.45 150
3.67
2… 2.01
100
2…
1.70
2… 2.30 50
2…
0
0 10000 20000 30000 40000 50000

1
14
27
40
53
66
79
92
105
118
131
144
157
170
183
196
209
222
235
Sales 2019 2020 2021 2022 2023 Dmart Nifty
 Income Statement
(All figures in cr) Historical Forecasted
Year ending 2019 A 2020 A 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E
Income Statement
Sales ₹ 20,052.87 ₹ 24,930.19 ₹ 24,339.27 ₹ 31,093.76 ₹ 42,968.90 ₹ 57,446.98 ₹ 68,998.51 ₹ 81,493.11 ₹ 94,620.72 ₹ 1,07,970.93
Sales Growth 24.32% -2.37% 27.75% 38.19% 34.11% 20.11% 18.11% 16.11% 14.11%

COGS ₹ 17,598.29 ₹ 21,629.92 ₹ 21,029.76 ₹ 27,099.63 ₹ 37,199.39 ₹ 49,938.82 ₹ 59,866.17 ₹ 70,707.45 ₹ 82,166.18 ₹ 93,690.67
% of sales 87.76% 86.76% 86.40% 87.15% 86.57% 86.93% 86.76% 86.76% 86.84% 86.77%

Gross Profit ₹ 2,454.58 ₹ 3,300.27 ₹ 3,309.51 ₹ 3,994.13 ₹ 5,769.51 ₹ 7,508.16 ₹ 9,132.34 ₹ 10,785.66 ₹ 12,454.54 ₹ 14,280.26
Gross margins 12.24% 13.24% 13.60% 12.85% 13.43% 13.07% 13.24% 13.24% 13.16% 13.23%

Selling and Administrative Cost ₹ 136.59 ₹ 120.27 ₹ 109.70 ₹ 144.56 ₹ 213.23 ₹ 295.90 ₹ 332.49 ₹ 392.61 ₹ 461.73 ₹ 531.86
% of sales 0.68% 0.48% 0.45% 0.46% 0.50% 0.52% 0.48% 0.48% 0.49% 0.49%

Employee Cost ₹ 355.42 ₹ 456.10 ₹ 536.57 ₹ 616.21 ₹ 746.97 ₹ 1,094.55 ₹ 1,332.99 ₹ 1,591.07 ₹ 1,799.65 ₹ 2,036.33
% of sales 1.77% 1.83% 2.20% 1.98% 1.74% 1.91% 1.93% 1.95% 1.90% 1.89%

Other Operating Expenses ₹ 280.93 ₹ 535.60 ₹ 723.98 ₹ 617.37 ₹ 1,042.94 ₹ 1,256.55 ₹ 1,617.73 ₹ 1,942.66 ₹ 2,143.81 ₹ 2,506.79
% of sales 1.40% 2.15% 2.97% 1.99% 2.43% 2.19% 2.34% 2.38% 2.27% 2.32%

Ebitda ₹ 1,681.64 ₹ 2,188.30 ₹ 1,939.26 ₹ 2,615.99 ₹ 3,766.37 ₹ 4,861.16 ₹ 5,849.13 ₹ 6,859.33 ₹ 8,049.35 ₹ 9,205.29
Ebitda margins 8.39% 8.78% 7.97% 8.41% 8.77% 8.46% 8.48% 8.42% 8.51% 8.53%

Depreciation & Amortization ₹ 212.49 ₹ 374.41 ₹ 414.16 ₹ 498.08 ₹ 638.87 ₹ 726.30 ₹ 815.41 ₹ 861.74 ₹ 926.65 ₹ 999.49
% of sales 1.06% 1.50% 1.70% 1.60% 1.49% 1.26% 1.18% 1.06% 0.98% 0.93%

EBIT ₹ 1,469.15 ₹ 1,813.89 ₹ 1,525.10 ₹ 2,117.91 ₹ 3,127.50 ₹ 4,134.85 ₹ 5,033.71 ₹ 5,997.60 ₹ 7,122.70 ₹ 8,205.80
Ebit margins 7.33% 7.28% 6.27% 6.81% 7.28% 7.20% 7.30% 7.36% 7.53% 7.60%

Interest & Other items ₹ 47.21 ₹ 69.12 ₹ 41.65 ₹ 53.79 ₹ 67.41 ₹ 67.55 ₹ 67.68 ₹ 67.80 ₹ 67.92 ₹ 68.05
% of sales 0.24% 0.28% 0.17% 0.17% 0.16% 0.20% 0.20% 0.18% 0.18% 0.18%

Profit Before Tax ₹ 1,421.94 ₹ 1,744.77 ₹ 1,483.45 ₹ 2,064.12 ₹ 3,060.09 ₹ 4,067.31 ₹ 4,966.03 ₹ 5,929.79 ₹ 7,054.77 ₹ 8,137.75
% of sales 7.09% 7.00% 6.09% 6.64% 7.12% 7.08% 7.20% 7.28% 7.46% 7.54%

Taxes ₹ 519.40 ₹ 443.69 ₹ 383.96 ₹ 571.57 ₹ 681.58 ₹ 1,016.83 ₹ 1,241.51 ₹ 1,482.45 ₹ 1,763.69 ₹ 2,034.44
Tax % 36.53% 25.43% 25.88% 27.69% 22.27% 25.00% 25.00% 25.00% 25.00% 25.00%

Net Profit ₹ 902.54 ₹ 1,301.08 ₹ 1,099.49 ₹ 1,492.55 ₹ 2,378.51 ₹ 3,050.48 ₹ 3,724.53 ₹ 4,447.35 ₹ 5,291.08 ₹ 6,103.31
Net margins 4.50% 5.22% 4.52% 4.80% 5.54% 5.31% 5.40% 5.46% 5.59% 5.65%

No. of Equity Shares 624.1 647.8 647.8 647.8 648.3 ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26

Earning Per Share ₹ 1.45 ₹ 2.01 ₹ 1.70 ₹ 2.30 ₹ 3.67 ₹ 4.71 ₹ 5.75 ₹ 6.86 ₹ 8.16 ₹ 9.41
Eps Growth 38.88% -15.49% 35.75% 59.24% 28.26% 22.10% 19.41% 18.97% 15.35%

Dividend Paid ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ -

Dividend Per Share ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 0.00 0.00 0.00 0.00 0.00
Dps Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Dividend Payout 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

NOPAT ₹ 932.51 ₹ 1,352.62 ₹ 1,130.36 ₹ 1,531.45 ₹ 2,430.91 ₹ 3,101.14 ₹ 3,775.29 ₹ 4,498.20 ₹ 5,342.02 ₹ 6,154.35

Retained Earning 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
 Balance Sheet
(All figures in cr) Historical Forecasted
Year ending 2019 A 2020 A 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E
Balance Sheet
Assets
Current Assets
Cash and Short Term Investments ₹ 235.60 ₹ 122.56 ₹ 1,448.53 ₹ 304.51 ₹ 1,610.52 ₹ 2,841.61 ₹ 4,661.16 ₹ 7,399.68 ₹ 10,835.29 ₹ 15,035.34
Total Receivables ₹ 64.37 ₹ 19.55 ₹ 43.58 ₹ 66.89 ₹ 62.16 ₹ 89.88 ₹ 105.90 ₹ 129.93 ₹ 146.55 ₹ 168.50
Total Inventory ₹ 1,608.65 ₹ 1,947.40 ₹ 2,248.28 ₹ 2,742.66 ₹ 3,243.48 ₹ 4,425.87 ₹ 5,401.83 ₹ 6,211.70 ₹ 7,131.37 ₹ 8,279.92
Other Current Assets ₹ 173.96 ₹ 258.16 ₹ 320.74 ₹ 328.79 ₹ 532.23 ₹ 532.23 ₹ 532.23 ₹ 532.23 ₹ 532.23 ₹ 532.23
Total Current Assets ₹ 2,082.58 ₹ 2,347.67 ₹ 4,061.13 ₹ 3,442.85 ₹ 5,448.39 ₹ 7,889.58 ₹ 10,701.11 ₹ 14,273.53 ₹ 18,645.45 ₹ 24,015.99

Non Current Assets

Net Property/Plant/Equipment ₹ 4,698.93 ₹ 6,234.15 ₹ 7,950.11 ₹ 10,311.08 ₹ 12,091.36 ₹ 13,321.21 ₹ 14,569.82 ₹ 15,842.48 ₹ 17,071.22 ₹ 18,176.11
Goodwill & Intangibles ₹ 78.28 ₹ 78.28 ₹ 78.28 ₹ 78.28 ₹ 78.28 ₹ 78.28 ₹ 78.28 ₹ 78.28 ₹ 78.28 ₹ 78.28
Long term Investment ₹ - ₹ - ₹ - ₹ 0.01 ₹ 0.01 ₹ 0.01 ₹ 0.01 ₹ 0.01 ₹ 0.01 ₹ 0.01
Other Assets ₹ 145.71 ₹ 3,416.06 ₹ 1,565.53 ₹ 1,638.76 ₹ 486.48 ₹ 486.48 ₹ 486.48 ₹ 486.48 ₹ 486.48 ₹ 486.48
Deferred Tax Assets (Net) ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ -
Total Non Current Assets ₹ 4,922.92 ₹ 9,728.49 ₹ 9,593.92 ₹ 12,028.13 ₹ 12,656.13 ₹ 13,885.98 ₹ 15,134.59 ₹ 16,407.25 ₹ 17,635.99 ₹ 18,740.88
Total Assets ₹ 7,005.50 ₹ 12,076.16 ₹ 13,655.05 ₹ 15,470.98 ₹ 18,104.52 ₹ 21,775.56 ₹ 25,835.71 ₹ 30,680.78 ₹ 36,281.43 ₹ 42,756.87

Liabilities and shareholders' equity

Current Liabilities
Accounts Payable ₹ 533.05 ₹ 506.47 ₹ 730.09 ₹ 761.21 ₹ 939.45 ₹ 1,560.01 ₹ 1,895.63 ₹ 2,293.36 ₹ 2,602.93 ₹ 2,975.06
Other current liabilities ₹ 693.87 ₹ 219.33 ₹ 375.68 ₹ 457.08 ₹ 527.56 ₹ 527.56 ₹ 527.56 ₹ 527.56 ₹ 527.56 ₹ 527.56
Total Current Liabilities ₹ 1,226.92 ₹ 725.80 ₹ 1,105.77 ₹ 1,218.29 ₹ 1,467.01 ₹ 2,087.57 ₹ 2,423.19 ₹ 2,820.92 ₹ 3,130.49 ₹ 3,502.62

Non current liabilities

Total Long Term Debt ₹ 125.67 ₹ 221.11 ₹ 312.01 ₹ 507.15 ₹ 476.66 ₹ 476.66 ₹ 476.66 ₹ 476.66 ₹ 476.66 ₹ 476.66
Deferred Tax Liabilities (Net) ₹ 63.07 ₹ 47.10 ₹ 50.27 ₹ 62.37 ₹ 75.19 ₹ 75.19 ₹ 75.19 ₹ 75.19 ₹ 75.19 ₹ 75.19
Other Liabilities ₹ 1.83 ₹ 1.95 ₹ 2.89 ₹ 5.28 ₹ 6.88 ₹ 6.88 ₹ 6.88 ₹ 6.88 ₹ 6.88 ₹ 6.88
Total Non Current Liabilities ₹ 190.57 ₹ 270.16 ₹ 365.17 ₹ 574.80 ₹ 558.73 ₹ 558.73 ₹ 558.73 ₹ 558.73 ₹ 558.73 ₹ 558.73

Shareholders Equity
Equity capital ₹ 624.08 ₹ 647.77 ₹ 647.77 ₹ 647.77 ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26
Reserves & Surplus ₹ 3,153.60 ₹ 4,437.40 ₹ 5,541.37 ₹ 7,035.30 ₹ 9,416.21 ₹ 12,466.69 ₹ 16,191.22 ₹ 20,638.56 ₹ 25,929.64 ₹ 32,032.96
Additional Paid - in capital ₹ 1,809.77 ₹ 5,994.57 ₹ 5,994.57 ₹ 5,994.57 ₹ 6,014.23 ₹ 6,014.23 ₹ 6,014.23 ₹ 6,014.23 ₹ 6,014.23 ₹ 6,014.23
Non controling interest ₹ 0.56 ₹ 0.46 ₹ 0.40 ₹ 0.25 ₹ 0.08 ₹ 0.08 ₹ 0.08 ₹ 0.08 ₹ 0.08 ₹ 0.08
Other Equity ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ -
Total Equity Capital ₹ 5,588.01 ₹ 11,080.20 ₹ 12,184.11 ₹ 13,677.89 ₹ 16,078.78 ₹ 19,129.26 ₹ 22,853.79 ₹ 27,301.13 ₹ 32,592.21 ₹ 38,695.53
Total Shareholder Equity & Liabilities ₹ 7,005.50 ₹ 12,076.16 ₹ 13,655.05 ₹ 15,470.98 ₹ 18,104.52 ₹ 21,775.56 ₹ 25,835.71 ₹ 30,680.78 ₹ 36,281.43 ₹ 42,756.87

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
 Cash Flow Statement
(All figures in cr) Historical Forecasted
Year ending 2019 A 2020 A 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E
Cash Flow Statement
Net Income ₹ 902.54 ₹ 1,301.08 ₹ 1,099.49 ₹ 1,492.55 ₹ 2,378.51 ₹ 3,050.48 ₹ 3,724.53 ₹ 4,447.35 ₹ 5,291.08 ₹ 6,103.31
Depreciation & Amortization ₹ 212.49 ₹ 374.41 ₹ 414.16 ₹ 498.08 ₹ 638.87 ₹ 726.30 ₹ 815.41 ₹ 861.74 ₹ 926.65 ₹ 999.49
Changes in Working Capital ₹ -320.51 ₹ -101.29 ₹ -486.57 ₹ -317.85 ₹ -589.54 ₹ -656.37 ₹ -436.17 ₹ -626.73 ₹ -798.37
Other Operating Cash Flows
Cash Flow from Operations (CFO) ₹ 1,115.03 ₹ 1,354.98 ₹ 1,412.36 ₹ 1,504.06 ₹ 2,699.53 ₹ 3,187.24 ₹ 3,883.57 ₹ 4,872.91 ₹ 5,591.00 ₹ 6,304.43

Capital Expenditure ₹ -1,416.80 ₹ -1,712.17 ₹ -2,029.42 ₹ -2,410.42 ₹ -2,211.95 ₹ -1,956.15 ₹ -2,064.02 ₹ -2,134.39 ₹ -2,155.39 ₹ -2,104.38
Cash Flow from Investing (CFI) ₹ -1,416.80 ₹ -1,712.17 ₹ -2,029.42 ₹ -2,410.42 ₹ -2,211.95 ₹ -1,956.15 ₹ -2,064.02 ₹ -2,134.39 ₹ -2,155.39 ₹ -2,104.38

Equity Issuance / Equity Raise ₹ - ₹ - ₹ - ₹ - ₹ -

Equity Repurchase ₹ - ₹ - ₹ - ₹ - ₹ -
Dividend Paid ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ -
LT Debt Issuance ₹ - ₹ - ₹ - ₹ - ₹ -
LT Debt Repayment ₹ - ₹ - ₹ - ₹ - ₹ -
Cash Flow from Financing (CFF) ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ -

Changes in Cash anc Cash Equivalents ₹ -301.77 ₹ -357.19 ₹ -617.06 ₹ -906.36 ₹ 487.58 ₹ 1,231.09 ₹ 1,819.55 ₹ 2,738.52 ₹ 3,435.61 ₹ 4,200.05

Opening Cash Balance ₹ 1,610.52 ₹ 2,841.61 ₹ 4,661.16 ₹ 7,399.68 ₹ 10,835.29

Changes in Cash anc Cash Equivalents ₹ 1,231.09 ₹ 1,819.55 ₹ 2,738.52 ₹ 3,435.61 ₹ 4,200.05
Ending Cash Balance ₹ 235.60 ₹ 122.56 ₹ 1,448.53 ₹ 304.51 ₹ 1,610.52 ₹ 2,841.61 ₹ 4,661.16 ₹ 7,399.68 ₹ 10,835.29 ₹ 15,035.34
 Schedule
(All figures in cr) Historical Forecasted
Year ending 2019 A 2020 A 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E
Working Capital Schedule
Inventory ₹ 1,608.65 ₹ 1,947.40 ₹ 2,248.28 ₹ 2,742.66 ₹ 3,243.48 ₹ 4,425.87 ₹ 5,401.83 ₹ 6,211.70 ₹ 7,131.37 ₹ 8,279.92
Inventory Turnover 12.17 10.02 10.86 12.43 11.28 11.08 11.38 11.52 11.32
Days of Inventory on Hand 30 36 34 29 32 33 32 32 32

Accounts Payables ₹ 533.05 ₹ 506.47 ₹ 730.09 ₹ 761.21 ₹ 939.45 ₹ 1,560.01 ₹ 1,895.63 ₹ 2,293.36 ₹ 2,602.93 ₹ 2,975.06
Accounts Payables Turnover 33.86 34.98 28.20 31.87 32.01 31.58 30.83 31.57 31.49
Days of Payables Outstanding 11 10 13 11 11 12 12 12 12

Accounts Receivables ₹ 64.37 ₹ 19.55 ₹ 43.58 ₹ 66.89 ₹ 62.16 ₹ 89.88 ₹ 105.90 ₹ 129.93 ₹ 146.55 ₹ 168.50
Accounts Recievables Turnover 594.14 771.08 562.94 665.93 639.18 651.52 627.21 645.64 640.76
Days of Sales Outstanding 1 0 1 1 1 1 1 1 1

Working Capital ₹ 1,139.97 ₹ 1,460.48 ₹ 1,561.77 ₹ 2,048.34 ₹ 2,366.19 ₹ 2,955.73 ₹ 3,612.10 ₹ 4,048.27 ₹ 4,675.00 ₹ 5,473.36
Change in working capital ₹ 320.51 ₹ 101.29 ₹ 486.57 ₹ 317.85 ₹ 589.54 ₹ 656.37 ₹ 436.17 ₹ 626.73 ₹ 798.37

PP&E Schedule

Opening Balance ₹ 12,091.36 ₹ 13,321.21 ₹ 14,569.82 ₹ 15,842.48 ₹ 17,071.22

Add: Capex (Including Intangibles) ₹ 1,416.80 ₹ 1,712.17 ₹ 2,029.42 ₹ 2,410.42 ₹ 2,211.95 ₹ 1,956.15 ₹ 2,064.02 ₹ 2,134.39 ₹ 2,155.39 ₹ 2,104.38
% of Sales 7.07% 6.87% 8.34% 7.75% 5.15% 3.41% 2.99% 2.62% 2.28% 1.95%
Less: Depreciation & Amortization ₹ -212.49 ₹ -374.41 ₹ -414.16 ₹ -498.08 ₹ -638.87 -726.30 -815.41 -861.74 -926.65 -999.49
% of PPE 4.52% 6.01% 5.21% 4.83% 5.28% 5.17% 5.30% 5.16% 5.15% 5.21%
Closing Balance ₹ 4,698.93 ₹ 6,234.15 ₹ 7,950.11 ₹ 10,311.08 ₹ 12,091.36 ₹ 13,321.21 ₹ 14,569.82 ₹ 15,842.48 ₹ 17,071.22 ₹ 18,176.11

Reserve & Surplus

Beginnning of Period ₹ 9,416.21 ₹ 12,466.69 ₹ 16,191.22 ₹ 20,638.56 ₹ 25,929.64
Add: Net Income ₹ 3,050.48 ₹ 3,724.53 ₹ 4,447.35 ₹ 5,291.08 ₹ 6,103.31
Less: Dividends ₹ - ₹ - ₹ - ₹ - ₹ -
Ending of Period ₹ 3,153.60 ₹ 4,437.40 ₹ 5,541.37 ₹ 7,035.30 ₹ 9,416.21 ₹ 12,466.69 ₹ 16,191.22 ₹ 20,638.56 ₹ 25,929.64 ₹ 32,032.96

Equity Schedule
Beginnning of Period ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26
Add: Equity Issurance ₹ - ₹ - ₹ - ₹ - ₹ -
Less: Equity Repurchase ₹ - ₹ - ₹ - ₹ - ₹ -
Ending of Period ₹ 624.08 ₹ 647.77 ₹ 647.77 ₹ 647.77 ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26 ₹ 648.26

Debt Schedule
Beginnning of Period ₹ 476.66 ₹ 476.66 ₹ 476.66 ₹ 476.66 ₹ 476.66
Add: Debt Issurance ₹ - ₹ - ₹ - ₹ - ₹ -
Less: Debt Repayment ₹ - ₹ - ₹ - ₹ - ₹ -
Ending of Period ₹ 125.67 ₹ 221.11 ₹ 312.01 ₹ 507.15 ₹ 476.66 ₹ 476.66 ₹ 476.66 ₹ 476.66 ₹ 476.66 ₹ 476.66

Total Interest Expense

Interest Expense ₹ 47.21 ₹ 69.12 ₹ 41.65 ₹ 53.79 ₹ 67.41 ₹ 67.55 ₹ 67.68 ₹ 67.80 ₹ 67.92 ₹ 68.05
Weighted average interest rate 0.24% 0.28% 0.17% 0.17% 0.16% 0.20% 0.20% 0.18% 0.18% 0.18%
 Ratio Analysis
(All figures in cr) Historical Forecasted
Year ending 2019 A 2020 A 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E Trend Mean Median
Ratio Analysis

Profitability Ratios
Gross Margin Ratio 12.24% 13.24% 13.60% 12.85% 13.43% 13.07% 13.24% 13.24% 13.16% 13.23% 13.13% 13.23%
Ebit Margin Ratio 8.39% 8.78% 7.97% 8.41% 8.77% 8.46% 8.48% 8.42% 8.51% 8.53% 8.47% 8.47%
Ebitda Margin Ratio 8.39% 8.78% 7.97% 8.41% 8.77% 8.46% 8.48% 8.42% 8.51% 8.53% 8.47% 8.47%
NOPAT Margin Ratio 4.65% 5.43% 4.64% 4.93% 5.66% 5.40% 5.47% 5.52% 5.65% 5.70% 5.30% 5.45%
Net Profit Margins Ratio 4.50% 5.22% 4.52% 4.80% 5.54% 5.31% 5.40% 5.46% 5.59% 5.65% 5.20% 5.35%

Growth Ratios
Revenue Growth 24.32% -2.37% 27.75% 38.19% 34.11% 20.11% 18.11% 16.11% 14.11% 21.16% 20.11%
Ebit Growth 23.47% -15.92% 38.87% 47.67% 32.21% 21.74% 19.15% 18.76% 15.21% 22.35% 21.74%
Ebitda Growth 30.13% -11.38% 34.90% 43.97% 29.07% 20.32% 17.27% 17.35% 14.36% 21.78% 20.32%
Net Profit Growth 44.16% -15.49% 35.75% 59.36% 28.25% 22.10% 19.41% 18.97% 15.35% 25.32% 22.10%

Capital Allocation Ratios

Return on Capital Employed 25.42% 15.98% 12.15% 14.86% 18.80% 21.00% 21.50% 21.53% 21.49% 20.90% 19.36% 20.95%
Return on Equity 23.89% 25.59% 17.76% 19.43% 23.63% 23.26% 22.12% 20.89% 19.91% 18.68% 21.52% 21.51%
Return on Assets 12.88% 10.77% 8.05% 9.65% 13.14% 14.01% 14.42% 14.50% 14.58% 14.27% 12.63% 13.57%

Leverage Ratios
Debt to Equity 0.02x 0.02x 0.03x 0.04x 0.03x 0.02x 0.02x 0.02x 0.01x 0.01x 2.25% 2.17%
Debt to EBITDA 0.07x 0.10x 0.16x 0.19x 0.13x 0.10x 0.08x 0.07x 0.06x 0.05x 10.17% 8.98%
Debt to Total capital 0.03x 0.04x 0.05x 0.06x 0.05x 0.04x 0.03x 0.02x 0.02x 0.01x 3.45% 3.36%
Interest Coverage Ratio 31.12x 26.24x 36.62x 39.37x 46.40x 61.21x 74.38x 88.46x 104.86x 120.59x 6292.47% 5380.50%

Liquidity Ratio
Current Ratio 1.70x 3.23x 3.67x 2.83x 3.71x 3.78x 4.42x 5.06x 5.96x 6.86x 412.13% 374.66%
Quick Ratio 0.39x 0.55x 1.64x 0.57x 1.50x 1.66x 2.19x 2.86x 3.68x 4.49x 195.30% 164.93%
Cash Ratio -0.25x -0.49x -0.56x -0.74x 0.33x 0.59x 0.75x 0.97x 1.10x 1.20x 29.00% 46.10%

Cash Ratio
CFO/Revenue 5.56% 5.44% 5.80% 4.84% 6.28% 5.55% 5.63% 5.98% 5.91% 5.84% 5.68% 5.72%
CFO/Ebitda 66.31% 61.92% 72.83% 57.49% 71.67% 65.57% 66.40% 71.04% 69.46% 68.49% 67.12% 67.44%
CFO/Net Profit 123.54% 104.14% 128.46% 100.77% 113.50% 104.48% 104.27% 109.57% 105.67% 103.30% 109.77% 105.08%

Activity Ratio
Debtor Turnover Ratio 594.14x 771.08x 562.94x 665.93x 639.18x 651.52x 627.21x 645.64x 640.76x 64426.66% 64076.00%
Creditors Turnover Ratio 33.86x 34.98x 28.20x 31.87x 32.01x 31.58x 30.83x 31.57x 31.49x 3182.21% 3158.12%
Inventory Turnover Ratio 12.17x 10.02x 10.86x 12.43x 11.28x 11.08x 11.38x 11.52x 11.32x 1134.04% 1131.54%
Fixed Assets Turnover Ratio 4.56x 3.43x 3.41x 3.84x 4.52x 4.95x 5.36x 5.75x 6.13x 465.98% 456.05%

(in days)
Debtors Days 1 0 1 1 1 1 1 1 1 57.03% 56.96%
Payable Days 11 10 13 11 11 12 12 12 12 1150.66% 1155.75%
Inventory Days 30 36 34 29 32 33 32 32 32 3229.76% 3225.69%
Cash Conversion Cycle 20 26 21 18 22 22 21 21 21 2136.12% 2123.63%
 Assumptions
(All figures in cr) Historical Forecasted
Year ending 2019 A 2020 A 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E
Revenue Growth

REVENUE FROM OPERATIONS

A) Sale of products
Commercial vehicles

Sale of goods 21906.32 27202.44 26306.45 33789.62 47010.25 57405.97 68952.44 81442.29 94565.68 107912.41
Growth % 24% -3% 28% 39% 22% 20.11% 18.11% 16.11% 14.11%
Sale of goods on approval basis 75.27 49.56 31.79 32.09 35.88 41.02 46.07 50.82 55.04 58.52
Growth % -34% -36% 1% 12% 14% 12% 10% 8% 6%
Less : Cost of goods sold on approval basis -63.67 -41.44 -26.63 -26.81 -29.96 0.00 0.00 0.00 0.00 0.00
21917.92 27210.56 26311.61 33794.9 47016.17

Less: Tax -1950.59 -2377.91 -2239.79 -2936.5 -4310.75 0.00 0.00 0.00 0.00 0.00
Other operating income 37.19 37.55 71.24 117.87 134.14 191.13 268.51 371.86 507.53 682.57
Growth % 1% 90% 65% 14% 42% 40% 38% 36% 34%

19967.33 24832.65 24071.82 30858.40 42705.42 57446.98 68998.51 81493.11 94620.72 107970.93

Interest on deposits and advances 23.59 32.49 178.13 103.96 107.56 0.00 0.00 0.00 0.00 0.00
Rent and amenities service income 3.60 2.88 2.89 3.55 4.69 0.00 0.00 0.00 0.00 0.00
Gain on sale of current investment 11.35 10.16 2.56 3.66 8.83 0.00 0.00 0.00 0.00 0.00
Gain on sale/discardment of PPE (net) 1.01 2.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Exchange gain (net) 5.98 8.63 7.73 2.70 6.16 0.00 0.00 0.00 0.00 0.00
Miscellaneous income 2.82 3.38 4.90 3.62 2.10 0.00 0.00 0.00 0.00 0.00
48.35 59.99 196.21 117.49 129.34 0.00 0.00 0.00 0.00 0.00

Total Revenue 20,015.68 24,892.64 24,268.03 30,975.89 42,834.76 57,446.98 68,998.51 81,493.11 94,620.72 1,07,970.93
Growth % 24% -3% 28% 38% 34% 20% 18% 16% 14%

Best Case 38.11% 24.11% 22.11% 20.11% 18.11%

Base Case 34% 20% 18% 16% 14%
Wrost Case 30.11% 16.11% 14.11% 12.11% 10.11%

Capex ₹ 1,416.80 ₹ 1,712.17 ₹ 2,029.42 ₹ 2,410.42 ₹ 2,211.95 ₹ 1,956.15 ₹ 2,064.02 ₹ 2,134.39 ₹ 2,155.39 ₹ 2,104.38

Taxes 36.53% 25.43% 25.88% 27.69% 22.27% 25% 25% 25% 25% 25%
 DCF
Date 16-07-2024 Implied Share price ₹ 888.78 Cost Of Debt Calculation
Todays Share price ₹ 4,943.65 Valued overvalued Interest Expenses ₹ 67.41
Debt ₹ 476.66
Assumptions Cost of debt 14.14%
Valuation Assumptions Income Tax Expenses ₹ 681.58
WACC 17.70% Income Before Tax ₹ 3,060.09
TGR 7.00% Effective Tax Rate 22.27%
1 2 3 4 5 Cost of debt (1-T) 10.99%
DCF 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

NOPAT (EBIT-TAX) ₹ 932.51 ₹ 1,352.62 ₹ 1,130.36 ₹ 1,531.45 ₹ 2,430.91 ₹ 3,101.14 ₹ 3,775.29 ₹ 4,498.20 ₹ 5,342.02 ₹ 6,154.35 Cost Of Equity Calculation
Risk free Rate 6.99%
D&A ₹ 212.49 ₹ 374.41 ₹ 414.16 ₹ 498.08 ₹ 638.87 ₹ 726.30 ₹ 815.41 ₹ 861.74 ₹ 926.65 ₹ 999.49 Beta 101.00%
Market Premium 10.61%
Capex ₹ 1,416.80 ₹ 1,712.17 ₹ 2,029.42 ₹ 2,410.42 ₹ 2,211.95 ₹ 1,956.15 ₹ 2,064.02 ₹ 2,134.39 ₹ 2,155.39 ₹ 2,104.38 Cost Of Equity 17.71%

Change in NWC ₹ - ₹ 320.51 ₹ 101.29 ₹ 486.57 ₹ 317.85 ₹ 589.54 ₹ 656.37 ₹ 436.17 ₹ 626.73 ₹ 798.37 Weight of Debt and Equity Calculation
Total Debt ₹ 476.66
Unlevered FCF ₹ 2,561.80 ₹ 3,759.71 ₹ 3,675.23 ₹ 4,926.52 ₹ 5,599.58 ₹ 6,373.13 ₹ 7,311.09 ₹ 7,930.50 ₹ 9,050.79 ₹ 10,056.58 Total Equity ₹ 3,21,699.65
Present value of FCF ₹ 5,414.90 ₹ 5,277.85 ₹ 4,864.22 ₹ 4,716.68 ₹ 4,452.85 Total Capital ₹ 3,22,176.31

Terminal Value ₹ 44,544.29 WACC Calculator

Present Value of Terminal Value ₹ 31,759.46 WACC 17.70%
Sum Of Present Value of Terminal Value ₹ 24,726.50
Enterprise Value ₹ 56,485.97
Cash 1,610.52
Debt ₹ -476.66
Equity Value ₹ 57,619.83
Outstanding Shares 64.83
Share Price 888.78
 Comparable Company Valuation
AVENUE SUPERMARTS LTD (Amount in Cr.)
Market Data Market Data Valuation
Company Ticker Share Price Share Outstanding Equity Value Enterprise Value Revenue EBITDA Net Income EV/Revenue EV/EBITDA P/E

Avenue Super. ₹ 4,716.75 65.07 ₹ 3,06,935 ₹ 3,06,888.50 ₹ 50,788.83 ₹ 4,250.22 ₹ 2,535.61

Trent ₹ 5,479.85 35.55 ₹ 1,94,802 ₹ 1,96,257.23 ₹ 12,375.11 ₹ 2,215.29 ₹ 1,477.46 15.86 x 88.59 x 131.85 x
Vedant Fashions ₹ 1,051.65 24.29 ₹ 25,542 ₹ 25,964.69 ₹ 1,367.53 ₹ 727.76 ₹ 414.17 18.99 x 35.68 x 61.67 x
Redtape ₹ 766.90 13.82 ₹ 10,599 ₹ 11,057.72 ₹ 1,842.92 ₹ 327.99 ₹ 176.24 6.00 x 33.71 x 60.14 x
Electronics Mart ₹ 229.41 38.47 ₹ 8,827 ₹ 10,312.70 ₹ 6,285.41 ₹ 459.56 ₹ 183.98 1.64 x 22.44 x 47.98 x
Medplus Health ₹ 682.45 11.95 ₹ 8,159 ₹ 9,026.39 ₹ 5,624.86 ₹ 394.09 ₹ 65.57 1.60 x 22.90 x 124.42 x

High 19.0x 88.6x 131.8x

Average 8.8x 40.7x 85.2x
Median 6.0x 33.7x 61.7x
Low 1.6x 22.4x 48.0x

AVENUE SUPERMARTS LTD EV/Revenue EV/EBITDA P/E

Implied Enterprise Value 447867.74 172837.76 156374.29

Net Debt 476.66 2.51 2.51
Implied Market Value 447391.08 172835.25 156371.78
Shares Outstanding 65.07 65.07 65.07
Implied Value Per Share 6875.54 2656.14 2403.13

Undervalued Overvalued Overvalued

 Stock Performance
Date CMP Dmart NSE Nifty 50
14-07-2023 3838.75 100 19564.5 100
17-07-2023 3713.55 96.74 19711.45 100.75
18-07-2023 3676.5 95.77 19749.25 100.94 Stock Performance
19-07-2023 3705.85 96.54 19833.15 101.37
20-07-2023 3678.8 95.83 19979.15 102.12 140
21-07-2023 3675.7 95.75 19745 100.92 120
24-07-2023 3668.2 95.56 19672.35 100.55
100
25-07-2023 3677.05 95.79 19680.6 100.59
26-07-2023 3712.65 96.72 19778.3 101.09 80
27-07-2023 3693.35 96.21 19659.9 100.49 60
28-07-2023 3713.9 96.75 19646.05 100.42
40
31-07-2023 3752.8 97.76 19753.8 100.97
01-08-2023 3740.3 97.44 19733.55 100.86 20
02-08-2023 3713.4 96.73 19526.55 99.81
0
03-08-2023 3699.9 96.38 19381.65 99.07
04-08-2023 3652.1 95.14 19517 99.76

100
109
118
127
136
145
154
163
172
181
190
199
208
217
226
235
244
1
10
19
28
37
46
55
64
73
82
91
07-08-2023 3640.35 94.83 19597.3 100.17 Dmart Nifty
08-08-2023 3648.45 95.04 19570.85 100.03
09-08-2023 3628.75 94.53 19632.55 100.35
10-08-2023 3598.2 93.73 19543.1 99.89
11-08-2023 3550.05 92.48 19428.3 99.30
14-08-2023 3509.3 91.42 19434.55 99.34
16-08-2023 3499.35 91.16 19465 99.49
17-08-2023 3507.65 91.37 19365.25 98.98
18-08-2023 3540.95 92.24 19310.15 98.70
21-08-2023 3547.7 92.42 19393.6 99.13
22-08-2023 3568.9 92.97 19396.45 99.14
23-08-2023 3539.3 92.20 19444 99.38
24-08-2023 3561.5 92.78 19386.7 99.09
25-08-2023 3534.6 92.08 19265.8 98.47
28-08-2023 3592.9 93.60 19306.05 98.68
29-08-2023 3664.35 95.46 19342.65 98.87
30-08-2023 3736.3 97.33 19347.45 98.89
31-08-2023 3720.4 96.92 19253.8 98.41
01-09-2023 3761.05 97.98 19435.3 99.34
04-09-2023 3755.75 97.84 19528.8 99.82
05-09-2023 3776.9 98.39 19574.9 100.05
06-09-2023 3796.8 98.91 19611.05 100.24
07-09-2023 3785.1 98.60 19727.05 100.83
08-09-2023 3782.4 98.53 19819.95 101.31
11-09-2023 3810.75 99.27 19996.35 102.21
12-09-2023 3753.25 97.77 19993.2 102.19
13-09-2023 3813.7 99.35 20070 102.58
14-09-2023 3808.05 99.20 20103.1 102.75
15-09-2023 3796 98.89 20192.35 103.21
18-09-2023 3797.9 98.94 20133.3 102.91
20-09-2023 3729.4 97.15 19901.4 101.72
21-09-2023 3686.95 96.05 19742.35 100.91
22-09-2023 3689.1 96.10 19674.25 100.56
25-09-2023 3664.1 95.45 19674.55 100.56
26-09-2023 3633.6 94.66 19664.7 100.51
27-09-2023 3640.7 94.84 19716.45 100.78
28-09-2023 3671.05 95.63 19523.55 99.79
29-09-2023 3675.6 95.75 19638.3 100.38
03-10-2023 3725.7 97.06 19528.75 99.82
04-10-2023 3872.95 100.89 19436.1 99.34
05-10-2023 3861.5 100.59 19545.75 99.90
06-10-2023 3833.95 99.87 19653.5 100.45
09-10-2023 3798.6 98.95 19512.35 99.73
10-10-2023 3793.8 98.83 19689.85 100.64
11-10-2023 3852.05 100.35 19811.35 101.26
12-10-2023 3862.75 100.63 19794 101.17
13-10-2023 3935.85 102.53 19751.05 100.95
16-10-2023 3856.8 100.47 19731.75 100.85
17-10-2023 3842.85 100.11 19811.5 101.26
18-10-2023 3795.95 98.89 19671.1 100.54
19-10-2023 3766.85 98.13 19624.7 100.31
20-10-2023 3749.5 97.68 19542.65 99.89
23-10-2023 3668.95 95.58 19281.75 98.55
25-10-2023 3740.55 97.44 19122.15 97.74
26-10-2023 3684.65 95.99 18857.25 96.39
27-10-2023 3665.45 95.49 19047.25 97.36
30-10-2023 3646.65 95.00 19140.9 97.83
31-10-2023 3633.4 94.65 19079.6 97.52
01-11-2023 3639.45 94.81 18989.15 97.06
02-11-2023 3647.45 95.02 19133.25 97.80
03-11-2023 3649.7 95.08 19230.6 98.29
06-11-2023 3649.55 95.07 19411.75 99.22
 DUPONT ANALYSIS
(DMART I BSE Code :500477)
₹ 4,943.65
52 Week (High - INR ₹ 5,220 & Low-3,491.25)

Dupont Analysis - Return On Equity & Return On Asset

Return on Equity (ROE)
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 902.5 1301.1 1099.5 1492.6 2378.5
Average Shareholder Equity 7922.0 13873.5 17723.6 19769.5 22917.5
Return on Equity (ROE) 11.39% 9.38% 6.20% 7.55% 10.38%

ROE- Dupont Equation

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 902.5 1301.1 1099.5 1492.6 2378.5
Revenue 20052.9 24930.2 24339.3 31093.8 42968.9
Net Profit Margin (A) 4.50% 5.22% 4.52% 4.80% 5.54%

Revenue 20052.9 24930.2 24339.3 31093.8 42968.9

Average Total Asset 6326.9 9540.8 12865.6 14563.0 16787.8
Asset Turnover Ratio (B) 3.17x 2.61x 1.89x 2.14x 2.56x

Average Total Asset 6326.9 9540.8 12865.6 14563.0 16787.8

Average Shareholder Equity 7922.0 13873.5 17723.6 19769.5 22917.5
Equity Multiplier (C) 0.80x 0.69x 0.73x 0.74x 0.73x

Return On Equity (A*B*C) 11.39% 9.38% 6.20% 7.55% 10.38%

Return on Asset
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 902.5 1301.1 1099.5 1492.6 2378.5
Average Total Asset 6326.9 9540.8 12865.6 14563.0 16787.8
Return on Asset 14.27% 13.64% 8.55% 10.25% 14.17%

ROA- Dupont Equation

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 902.5 1301.1 1099.5 1492.6 2378.5
Revenue 20052.9 24930.2 24339.3 31093.8 42968.9
Net Profit Margin (A) 4.50% 5.22% 4.52% 4.80% 5.54%

Revenue 20052.9 24930.2 24339.3 31093.8 42968.9

Average Total Asset 6326.9 9540.8 12865.6 14563.0 16787.8
Asset Turnover Ratio (B) 3.17x 2.61x 1.89x 2.14x 2.56x

Return On Asset (A*B) 14.27% 13.64% 8.55% 10.25% 14.17%

DuPont analysis allows investors and analysts to assess how efficiently a company is utilizing its assets and equity to generate profits. By breaking down ROE
into these components, it provides insights into areas where a company may be performing well or where improvements could be made.

ROE =Net Profit Margin ×Asset Turnover ×Equity Multiplier

(DMART I BSE Code :500477)
₹ 4,943.65
52 Week (High - INR ₹ 5,220 & Low-3,491.25)

Altman's Z Score Analysis Calculation

Working Capital / Total Assets

2019 2020 2021 2022 2023
Working Capital 855.7 1621.9 2955.4 2224.6 3981.4
Total Assets 7005.5 12076.2 13655.1 15471.0 18104.5
Working Capital / Total Assets (A) 12.21% 13.43% 21.64% 14.38% 21.99%

Retained Earnings / Total Assets

2019 2020 2021 2022 2023
Retained Earnings 903 1301 1099 1493 2379
Total Assets 7005.5 12076.2 13655.1 15471.0 18104.5
Retained Earnings / Total Assets (B) 12.88% 10.77% 8.05% 9.65% 13.14%

EBIT / Total Assets

2019 2020 2021 2022 2023
EBIT 1,469 1,814 1,525 2,118 3,128
Total Assets 7005.5 12076.2 13655.1 15471.0 18104.5
EBIT / Total Assets (C) 20.97% 15.02% 11.17% 13.69% 17.27%

Market Cap/ Long Term Liabilities

2019 2020 2021 2022 2023
Market Cap 91809.1 141700.7 185202.0 259326.9 220477.8
Long Term Liabilities 125.7 221.1 312.0 507.2 476.7
Market Cap/ Long Term Liabilities (D) 73055.68% 64086.07% 59357.72% 51134.16% 46254.74%

Sales/Total Assets
2019 2020 2021 2022 2023
Total Sales 20052.9 24930.2 24339.3 31093.8 42968.9
Total Assets 7005.5 12076.2 13655.1 15471.0 18104.5
Sales/Total Assets (E) 286.24% 206.44% 178.24% 200.98% 237.34%

Altman's Z Score Analysis Calculation

2019 2020 2021 2022 2023
Final Score 442.22 387.39 358.67 309.57 280.92
Financial Stability Strong Strong Strong Strong Strong
Notes:-
Less than 1.81- Distressed Zone

1.81 to 3.0- Grey Zone

More Than 3.0 - Financially Strong

Disclaimer:- This Report is made as apart of educational purpose only. The author of the report is not liable for any loss due to taken basis this report. It is advisable to
sonsult SEBI registered research analyst before making any investment.