Dmart Freehold land analysis
Look at the land value almost 50% of the fixed assets consist of land, approx 13% of revenue size consists in land only.
While going through its balance sheet and notes to accounts, the company has valued its freehold land (simply means land not mortgage anywhere) on COST i.e, the purchase cost of the land, which means the market value of these immovable properties could be much higher (as some of the properties were purchased at the time of starting dmart and in some most prominent places) You all must have seen the locationsb at which dmart purchases properties.
Company has already reached at 36k crore revenue till dec23 while the last year total revenue was 42k crore.
Company is holding approx 1500 cr cash at 31 March 23, making it a more aggressive buyer of properties.
I am sure in few years the value of these properties would be bigger than the revenues if dmart continues to purchase them at the same pace.
What am I missing ?
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