Avenue Supermarts Limited (DMART.NS) stock analysis

In our weekly check, Avenue Supermarts Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 5.

About Avenue Supermarts Limited

Avenue Supermarts Limited is a Consumer Defensive company (Discount Stores) based in India, listed on NSE as DMART.NS.

What our checks show for DMART.NS

Red flags

• Operating profit does not cover the interest bill (0.3x): interest is paid from cash or new debt.
• The net margin is only 4.3%: little room if costs rise.
• Free cash flow is negative (-0.9% of revenue): the business spends more cash than it brings in.
• The price is 66.9 times earnings (P/E): the market already pays for a lot of future growth.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 0.5 points over 5 years, to 4.3%: the company keeps less of each sale as profit.
• The stock has fallen as much as 42% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Net debt is only 0.4x a year of EBITDA: the balance sheet has room.
• Analysts expect earnings per share to grow about 17.8% a year over the next years.
• Analysts expect revenue to grow about 16.7% a year over the next years.
• Revenue grew 17.1% a year over the last 3 years.
• A large company: market value $21.96 billion.
• Beta 0.23: the stock usually moves less than the market.

Next earnings report: 2027-01-11

Similar companies

WMT · WALMEX.MX · COST

Questions

What grade does Avenue Supermarts Limited (DMART.NS) have?

In our weekly check, Avenue Supermarts Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of DMART.NS stock?

This week's biggest flags for Avenue Supermarts Limited: Weak interest cover, Thin margins, Weak free cash flow. In total 8 of 24 checks show a warning or a red flag.

What does Avenue Supermarts Limited do?

Avenue Supermarts Limited is a Consumer Defensive company (Discount Stores) based in India, listed on NSE as DMART.NS.

When does Avenue Supermarts Limited report earnings next?

The next earnings report is expected on 2027-01-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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