Avenue Supermarts Faces Operational Challenges Amidst Strong Market Position and Growth Rates

May 20 2025 08:27 AM IST
share
Share Via
Avenue Supermarts, a key player in the retail sector, recently experienced an evaluation adjustment reflecting its market position. In Q4 FY24-25, the company reported flat financial performance, with notable growth in net sales and operating profit, but faced challenges in operational efficiency and lower returns on capital employed.
Avenue Supermarts, a prominent player in the diversified retail sector, has recently undergone an evaluation adjustment reflecting its current market position and financial metrics. The company, which boasts a substantial market capitalization of Rs 2,73,405 crore, holds a significant share of 41.79% within its industry.

In the latest quarter, Q4 FY24-25, Avenue Supermarts reported flat financial performance, with net sales growing at an annual rate of 19.00% and operating profit at 15.58%. Despite these growth figures, the company recorded its lowest return on capital employed (ROCE) at 16.82% and a profit before tax (PBT) of Rs 695.25 crore, indicating some challenges in operational efficiency.

The company's debt-to-equity ratio remains low at 0.01 times, suggesting a conservative approach to leverage. However, the stock has underperformed the broader market, generating negative returns of -9.96% over the past year, while the BSE 500 index has seen returns of 7.71%.

Overall, Avenue Supermarts continues to be a major entity in the retail landscape, with a technical trend that has shifted positively, supported by various bullish indicators.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News