Avenue Supermarts receives 'Hold' rating from MarketsMOJO, shows strong financial position and potential for growth.

Avenue Supermarts, one of the leading retail companies in India, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown a low Debt to Equity ratio of 0.02 times, indicating a strong financial position.
The company has also displayed healthy long-term growth with an annual increase of 19.66% in Net Sales and 20.53% in Operating profit. Additionally, the stock is currently in a Mildly Bullish range, with multiple factors such as MACD, KST, and OBV pointing towards a bullish trend.

Avenue Supermarts is also backed by its majority shareholders, the Promoters, and has a market cap of Rs 2,71,694 crore, making it the second-largest company in the retail sector. Its annual sales of Rs 54,812.66 crore account for 46.39% of the industry.

However, the company's recent results for September 2024 have been flat, with its ROCE (HY) at its lowest at 17.89% and CASH AND CASH EQUIVALENTS (HY) at Rs 305.00 crore. With a ROE of 13.3, the stock is currently trading at a Very Expensive valuation with a 13.5 Price to Book Value.

Despite this, the stock is trading at a fair value compared to its average historical valuations. In the past year, while the stock has generated a return of 6.31%, its profits have risen by 15.2%, resulting in a PEG ratio of 6.6.

In the last year, Avenue Supermarts has underperformed the market, with a return of 6.31% compared to the market's (BSE 500) returns of 33.11%. However, with its strong financial position and potential for growth, the stock is still considered a 'Hold' by MarketsMOJO.