Retailing sector Euphoria Could Continue ???? DMART ( AVENUE SUPERMARTS LTD ) FUNDAMENTALS ??? Price : Rs. 1076.75 SECTOR : Retailing Market Cap : 67189 Cr. FACE VALUE : 10 Eq : 624.08 Cr. Reserves : 3216.54 Cr. Debt : 1497.32 Cr. Book Value : 61.56 Promoters stake : 82.20 % Dividend : Nil Sales : 12833.85 Cr. Net Profit : 478.75 Cr. EPS : 7.73 PE Ratio : 139.29 (???) ================================================ Stock ---- PE Ratio Future Retail : 58.15 Trent : 96.35 Future Life Style : 92.34 Aditya Birla Fash. : 216.72 V- Mart Retail : 48.11 V2 Retail : 31.85 Disclaimer : I am not a SEBI Registered Analyst , this is only learning and Discussion Purpose ..... source : Ventura
India will be third biggest Economy of World in next few years. Should we not expect some of our retailer having market cap like Walmart in US on the strength of 1.3 billion consumers. Dmart and Rel Retail (if listed) may trade at market cap of few lakh Crores by that time. I am invested in Dmart and Rel retail(through RIL) on this assumption . Future group is also there but I dont know how many companies Mr Bihani needs to do do just one business of retail (Some expert member can give list of his many listed, unlisted and subsidiary companies he has made to do just retail business) and how many companies he needs to sale, divest, close, wind up, merge, demerge , to do IPOs, joint venture and not what. In my view pvt financial and consumption are best two sectors to play this Great Indian Bull Market. No recommendation to buy retail, consumption or pvt financial stocks but just for discussion.
Wal- Mart Stores USA present PE Ratio is at 18.98 Indian consumers 1.34 Billions , but our per capita income is very low USA consumers 32.27 Cr. India's per capita income (nominal) was " $1,861 " in 2016, ranked at 112th out of 164 countries by the World Bank The per capita in the United States was last recorded at " 52,194.90 US dollars " in 2016. 28 Times greater per capita income in USA it shows purchasing power 28 times but Wal mart USA is at 18.98 PE Ratio with USA 32.27 Cr. consumers Indian consumers 4 Times bigger than USA , in my view growth & valuations both are very important
@kharb With your such strong conviction about - India being the third largest economy - in Indian retailers Can you answer the following questions that arise in my mind - 3rd largest economy : (1) is this your inherent belief or simply based on what Morgan Stanley has recently stated? (2) if it's your inherent belief, can you lay bare your rationale behind this conviction of yours - indian retailers: (1) what according to you is the future retail scenario? Online or brick and mortar stores? (2) why do you limit yourself to Walmart only and not belief that Indian retailer valuations could be like that of Amazon and Alibaba (currently around double of Walmart) (3) with indian being the brightest spot, where do you see the presence of global retailers (both online and brick and mortar) in Indian markets? - Don't you think that if India is going to leapfrog to 3rd largest, other sectors would similarly leapfrog. Do you see Infosys or TCS mkt cap matching that of Microsoft, Google etc or Sun Pharma etc being top notch global pharma company like novartis or Pfizer or Sanofi ? And ofcourse do you think Rel Cap will be up there along with the top wall financial institutions like Goldman Sachs or J P Morgan etc
Can you answer the following questions 1. In future next 5 years Demart maintaining same PE Ratio 139 approx ? 2. If other strong business groups in india also starts same retail business like Dmart stores near by Dmart stores , is it continue profit growth and PE Ratio expansion same manner ? 3. In future thousands of retail shops established other Indian groups like Dmart , growth and expansion in Demart same in future ? in my view largest economies are not working much , per capita income will decide business growth , purchasing power is final strength .... and I am not interested in NBFC stocks , just i saw Relcap for trading purpose but present my priorities are deferent .... In ADAG Group my views are negative .... it is another JP Associates ( Not J P MORGAN )
@RAMA MURTHY SASTRY CHALLA First, My message and questions therein was directed to @kharb and not you and Second, in case your questions are also meant for @kharb , kindly state that clearly just like I did thanks
ok ji , dont think other wise , my questions are for all members , who is interested in this subject purpose is only learning
So @kharb and any other member please do answer the points raised by Rama Btw Walmart that is being referred to quotes at a PE of below 20 if I am not mistaken but Amazon is over 200