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DMart CEO Neville Noronha sells stock worth Rs.514 million

As DMart’s stock continues to rally, CEO Neville Noronha sells shares worth ₹514 million

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Published 2 years ago on Dec 13, 2019 2 minutes Read

Very few companies — even those with strong economic moats — manage to register growth of more than 20% each year. But Avenue Supermarts, which runs DMart, is truly an outlier. It continues to clock impressive performance. Net sales and profit growth of 24.36% and 40.39%, respectively, in the first half of FY20 reflects that the company has been immune to the consumption slowdown in the country. A combination of everyday discount strategy and a lean business model has helped the company to clock stellar numbers in each quarter. No surprises then that analysts and investors continue to regard the stock as a favourite in this space. “DMart remains our key consumer pick - we remain bullish on what we believe to be a best-in-class cashflow-backed earning-compounder,” states a JM Financial report. This optimism in the market has led to a stellar rally in the stock, which has gained a whopping 177% since listing in 2017. While the stock currently trades at Rs.1,780, JM Financial has a target of Rs.2,070.