D-Mart shares more than tripled , surge 18% today

Sep 26 2017 03:16 PM
D-Mart shares more than tripled , surge 18% today

Goldman Sachs initiated coverage on Avenue Supermarts, which runs the D-Mart retail store. The global financial services  have a buy rating on the stock with a target price of Rs 1,586, entail an upside of more than 50% from the current levels. Shares of D-Mart rush forward 18% to Rs 1,212 on Tuesday afternoon as the investor’s joyfulness news! The shares had more than tripled at yesterday’s closing price to Rs 1,029, as compared with the issue price of Rs 299. Goldman Sachs considers that EBIT of the company is likely to grow 13 times in the next 10 years. It also added Avenue Supermarts to its certainty list.

Billionaire Radhakrishnan Damani owned Avenue Supermarts has had a dream run at the bourses so far, after having a blockbuster listing.The stock had made a mammoth entry in the market with a bumper listing pricing of Rs 606 at the NSE as against its issue price of Rs 299 per share on March 21, 2017, implying listing gains of more than 100%. In just five months Avenue Supermarts has more than tripled investor wealth against the issue price of Rs 299.

In fact, earlier this month, Ashburton Investments which manages assets to the air of a staggering $10 billion globally and is also a prominent investor in Infosys, rued that it had missed the bus on D-Mart.  In conversation with ET Now, Jonathan Schiessl, the chief investment officer at Ashburton Investments said that he initially felt that the company was overvalued. Jonathan Schiessl said earlier this month, “We did a lot of work on that and determined to stay away. The valuation just kept us away. Sometimes you just require biting the bullet.”

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