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Dupont Analysis Prasad

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Prasad Vadhane
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16 views

Dupont Analysis Prasad

Uploaded by

Prasad Vadhane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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AVENUE SUPERMARTS LTD

( AVANTIFEED | BSE Code: 512573)


INR 3501.75
52 Week High - INR 4609 & Low - 3292)

About the Company


Avenue Supermarts Limited, d/b/a DMart, is an Indian retail corporation that operates a chain of
supermarkets and hypermarkets. The company was founded by Radhakishan Damani and is based in
Mumbai. As of September 2024, DMart has 377 stores across 12 states and union territories in India.
In March 2024, the company had a total of 13,971 permanent employees and 59,961 employees

Financial Summary
Net Profit (INR Crs.) Average Total Asste (INR Crs.)
Revenue (INR Crs.)
16,789
42,840 2,379 14,563
12,866
30,976
1,493 9,541
24,870 24,143 1,301
1,099

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Return on Equity (%) Return on Asset (%) Financial Leverage

15.6% 16.0% 14.2% 114.5%


13.6%

11.5% 112.6% 112.8%


10.2%
9.5% 8.5%
110.6%

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Recent Updates
• The retailer's EBITDA rose 22.3% YoY to Rs 943 crore while its operating profit margin also growth of
13 bps at 7.41%.
• The profit was Rs 460 crore in the corresponding quarter of the previous financial year.
• The retailer's EBITDA rose 22.3% YoY to Rs 943 crore while its operating profit margin also a growth
of 13 bps at 7.41%.
• DMart added 24 stores, while 41 stores were added in the entire FY24.
• Avenue Supermart shares ended flat at Rs 4610.35 on Friday.

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Dupont Analysis - Return on Equity & Return on Asset
Return on Equity (ROE)
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 478.8 806.3 902.5 1,301.1 1,099.5 1,492.6 2,378.5
Average Shareholder Equity 2,681.1 4,255.4 5,128.3 8,333.6 11,631.7 12,930.7 14,878.2
Return on Equity 17.86% 18.95% 17.60% 15.61% 9.45% 11.54% 15.99%

ROE - Dupont Equation


Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 478.8 806.3 902.5 1,301.1 1,099.5 1,492.6 2,378.5
Revenue 11,897.7 15,033.2 20,004.5 24,870.2 24,143.1 30,976.3 42,839.6
Net Profit Margin (A) 4.02% 5.36% 4.51% 5.23% 4.55% 4.82% 5.55%
Revenue 11,897.7 15,033.2 20,004.5 24,870.2 24,143.1 30,976.3 42,839.6
Average Total Asset 4,460.4 5,733.8 6,326.9 9,540.8 12,865.6 14,563.0 16,788.6
Asset Turnover Ratio (B) 2.7x 2.6x 3.2x 2.6x 1.9x 2.1x 2.6x
Average Total Asset 4,460.4 5,733.8 6,326.9 9,540.8 12,865.6 14,563.0 16,788.6
Average Sharholder Equity 2,681.1 4,255.4 5,128.3 8,333.6 11,631.7 12,930.7 14,878.2
Equity Mutiplier (C) 166.36% 134.74% 123.37% 114.49% 110.61% 112.62% 112.84%

Return on Equity (A*B*C) 17.86% 18.95% 17.60% 15.61% 9.45% 11.54% 15.99%

Return on Asset
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 478.8 806.3 902.5 1,301.1 1,099.5 1,492.6 2,378.5
Average Total Asset 4,460.4 5,733.8 6,326.9 9,540.8 12,865.6 14,563.0 16,788.6
Return on Asset 10.73% 14.06% 14.27% 13.64% 8.55% 10.25% 14.17%

ROA - Dupont Equation


Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 478.8 806.3 902.5 1,301.1 1,099.5 1,492.6 2,378.5
Revenue 11,897.7 15,033.2 20,004.5 24,870.2 24,143.1 30,976.3 42,839.6
Net Profit Margin (A) 4.02% 5.36% 4.51% 5.23% 4.55% 4.82% 5.55%
Revenue 11,897.7 15,033.2 20,004.5 24,870.2 24,143.1 30,976.3 42,839.6
Average Total Asset 4,460.4 5,733.8 6,326.9 9,540.8 12,865.6 14,563.0 16,788.6
Asset Turnover Ratio (B) 2.7x 2.6x 3.2x 2.6x 1.9x 2.1x 2.6x

Return on Asset (A*B) 10.73% 14.06% 14.27% 13.64% 8.55% 10.25% 14.17%

Dupont Summary
• ROE of Avenue Supermart has been decreased to 15.61% during COVID and made a low of 9.45% in FY2021 which
now has rose to precovid levels and currently at 15.99% as of 31 March 2023.
• ROE has been decreased significantly in past 7 years from 17.86% to 15.99%. While the company was able to
increase the net margin from 4.02% in FY2017 to 5.55% in FY23. Asset efficiency of the company is constantly
maintained throughout the period, the reason fpr fall in ROE is reduction of financial leverage in the company from
1.66x in FY 2017 to 1.13x in FY2023.
• ROA of Avenue Supermart has been increased from 10.73% in FY2017 to 14.17% in FY2023. While the asset
efficiency remains constant, the reason for increase in ROA is increased net margin of the company.
Disclamier : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report
is not liable for any losses due to action taken basis this report. It is advisable to consult SEBI registered research analust before making
any investments

Page 2

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