Name -Purav Shailesh Gutka

TYBBM A
ROLL No.31010621031
Subject -Technical analysis.
Company Name-AVENUE SUPERMARTS

About the company

Avenue Supermarts Limited (DMart) is a national supermarket chain, with a
focus on value-retailing. We offer a wide range of products with a focus on
the Foods, Non-Foods (FMCG) and General Merchandise
& Apparel product categories.
DMart is a one-stop supermarket chain that aims to offer customers a wide
range of basic home and personal products under one roof. Each DMart
store stocks home utility products - including food, toiletries, beauty
products, garments, kitchenware, bed and bath linen, home appliances and
more - available at competitive prices that our customers appreciate. Our
core objective is to offer customers good products at great value.

DMart was started by Mr. Radhakishan Damani and his family to address
the growing needs of the Indian family. From the launch of its first store in
Powai in 2002, DMart today has a well-established presence in 345
locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh,
Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and
Rajasthan. With our mission to be the lowest priced retailer in the regions
we operate, our business continues to grow with new locations planned in
more cities.

The supermarket chain of DMart stores is owned and operated by Avenue

Supermarts Ltd. (ASL). The company has its headquarters in Mumbai.

* The brands D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch

Harbour, etc are brands owned by ASL.

Terms to understand

PE Ratio
The PE Ratio measures the relationship between the company's current stock price
and EPS (Earnings Per Share). A PE Ratio indicates how many times investors pay
money to get 1 rupee of return. It is one of the important parameters to evaluate
whether a company's stock price is overvalued or undervalued.The PE ratio is the most
popular and well-known valuation metric used by many investors to analyze whether a
stock is overvalued or undervalued. It indicates how much investors are willing to pay
for a stock's current price to earn one rupee.

P/E Ratio of Avenue Supermarts Ltd. with value of 102.77 shows that stock price is
high compared to company earnings and may be overvalued.

Sales growth and revenue per square feet: You can look at the historical sales
growth of the company in order to forecast the future sales of the company. Sales for
the current year of Avenue Supermarts is Rs 41,833.25 Cr. The compounded sales
growth of the past three years of Avenue Supermarts is 19.24 %.
Operating Margin: This will tell you about the operational efficiency of the company.
The operating margin of Avenue Supermarts for the current financial year is 8.75 %.

Current Ratio: This is the working capital ratio that will tell you whether the company is
generating enough cash for the working capital requirements. The current ratio of
Avenue Supermarts is 4.00 as of this year.

Return Ratios such as Return on Assets (ROA), Return on Equity (ROE) of Avenue
Supermarts is 15.20 % and 16.85 % respectively for the current year. 3-year average
ROE is 13.06 %.

Dividend Yield: - It tells us how much dividend we will receive in relation to the price of
the stock. The current year dividend for Avenue Supermarts is Rs 0 and the yield is 0
%.

Share Price: - The current share price of Avenue Supermarts is Rs 3,918.90. One
can use valuation calculators of ticker to know if Avenue Supermarts share price is
undervalued or overvalued.
KEY POINTS

Store Network
As of Dec,23 Co. operates 341 stores across 22 cities and one union territory with an 11.8
million square ft retail business area. AVL has its highest presence in Maharashtra with 103
stores and followed by Gujarat with 57 stores and Telangana with 36 stores.

Revenue breakup H1FY24

Foods : 56%
Non-Foods (FMCG) : 21%
General Merchandise & Apparel : 23%

Revenue from Sales per Retail Business Area sq ft

FY20 : Rs. 32,879
FY23 : Rs. 31,096

Steady Store network expansion

The co. follows a cluster-based expansion approach for penetrating areas where they are already
present, before expanding to newer regions. Using this strategy, they have added 34 stores in

between H1FY23 and H1FY24. [1]. The company has opened its new stores at Bindayaka,
Rajasthan, Joharapuram, Andhra Pradesh, Nizampet, Telangana in Dec,23.
Converting stores for E-commerce
The company closed down two of its stores in Mumbai on Aug, 20 and converted the same into a
local fulfillment center for E-commerce deliveries and this is the first time where the company
has closed down its stores since its IPO.

Increasing competition from E-retail

With the advent of the pandemic, E-retail has made its mark with the Indian consumer's Amazon
pantry and Jio mart has established its presence in major cities and the competition is increasing.
The company incurred capital expenditure of over Rs 1,300 crore in fiscal 2021 and increased
retail space to 8.8 million sq ft (which further increased to 10.3 million sq ft as of December 31,
2021) from 7.8 million sq ft.

Raising of funds
Avenue Supermarts raised 4098 Cr via QIP at an issue price of Rs. 2,049 on 11th February,
2020. The funds raised will be used for future expansion and partial repayment of the existing
debts.

Technical Analysis of avenue supermarts.

Trend movement

Trend lines
One way for an analyst to see the trend is by drawing what are called trend lines. A trend line is a
straight line that connects 2 or more price points and then extends into the future to act as a line
of support or resistance. Many of the principles applicable to support and resistance levels can be
applied to trend lines as well.

1.Uptrend movement
An uptrend line is a straight line drawn upward to the right that connects 2 or more low points.
The second low must be higher than the first for the line to have an upward incline. Uptrend lines
act as support and indicate that there is more demand than supply, even as the price rises. As
long as prices remain above the trend line, the uptrend is considered to be intact. A break below
the uptrend line indicates that a change in trend may be occurring.

2.Downtrend Movement
A downtrend line is a straight line drawn downward to the right that connects 2 or more high
points. The second high must be lower than the first for the line to have a downward incline.
Downtrend lines act as resistance and indicate that there is more supply than demand, even as the
price falls. As long as prices remain below the trend line, the downtrend is considered to be
intact. A break above the downtrend line indicates that a change in trend may be occurring.

3.Three black rows

Three Black Crows is a popular bearish candlestick pattern that signifies a potential
reversal of an uptrend in the stock market. This article will delve into the details of the
Three Black Crows pattern, understand its characteristics, and explore its limitations.
Additionally, we will compare it to another pattern called Three White Soldiers and
discuss how to trade using the Three Black Crows pattern effectively.

4.Three white soldiers

Three White Soldiers pattern indicates a bullish reversal. In the Three White Soldiers

pattern, three consecutive bullish candlesticks form with higher highs and higher lows,

suggesting a shift from bearish to bullish sentiment.The three white soldiers is formed

when the price action consists of three consecutive long-bodied candles that close near

their highs with little or no wick. This suggests buyers were in control during each

session, continuously bidding the price higher. The pattern shows strong and persistent

buying pressure that overwhelms selling pressure. Prior reversal signals like doji

candles may precede the emergence of this pattern. The three white soldiers pattern

implies existing downtrends may reverse .

5.Hammer
A hammer is a price pattern in candlestick charting that occurs when a

security trades significantly lower than its opening, but rallies within the period

to close near the opening price. This pattern forms a hammer-shaped

candlestick, in which the lower shadow is at least twice the size of the real
body. The body of the candlestick represents the difference between the

opining and closing prices, while the shadow shows the high and low prices

for the period.

6 Evening star

An evening star is a stock price chart pattern that's used by technical analyst’s
to detect when a trend is about to reverse. It's a bearish candlestick pattern
that consists of three candles: a large white candlestick, a small-bodied
candle, and a red candle.

7.Falling three methods

The falling three methods pattern occurs when a downtrend stalls as bears lack the
impetus or conviction to keep pushing a security's price lower. This leads to a counter-
move that is often the result of profit taking and is possibly an attempt by eager bulls
anticipating a reversal. The subsequent failure to make new highs or close above the
opening price of the long-down candle emboldens bears to re-engage. This leads to a
resumption of the downtrend.

Support and resistance

8.Support
9.Resistance
In a down trend, prices fall because there is an excess of supply over demand. The lower
prices go, the more attractive prices become to those waiting on the sidelines to buy the
shares. At some level, demand that would have been slowly increasing will rise to the
level where it matches supply. At this point, prices will stop falling. This is support.
Resistance is the opposite of support. Prices move up because there is more demand than
supply. As the prices move higher, there will come a point when selling will overwhelm
the desire to buy. This happens for a variety of reasons. It could be that traders have
determined that prices are too high or have met their target. It could be the reluctance of
buyers to initiate new positions at such rich valuations. It could be for any other number
of reasons. But a technician will clearly see on a price chart a level at which supply
begins to overwhelm demand. This is resistance. Like support, it can be a level or a zone.

10.Inverse hammer

A similarly bullish pattern is the inverted hammer. The only difference being that the

upper wick is long, while the lower wick is short.It indicates a buying pressure, followed
by a selling pressure that was not strong enough to drive the market price down. The

inverse hammer suggests that buyers will soon have control of the market.

11.Bearish engulfing

A bearish engulfing pattern occurs at the end of an uptrend. The first candle has a small

green body that is engulfed by a subsequent long red candle.It signifies a peak or

slowdown of price movement, and is a sign of an impending market downturn. The lower

the second candle goes, the more significant the trend is likely to be.

12.Bearish Harami
A bearish harami is a two bar Japanese candlestick pattern that suggests prices may soon

reverse to the downside. The pattern consists of a long white candle followed by a small

black candle. The opening and closing prices of the second candle must be contained

within the body of the first candle. An uptrend precedes the formation of a bearish

harami.