DMart, Venky's, Cholamandalam Investment hit record highs

Shares of Avenue Supermarts, which runs the D-Mart supermarkets chain, poultry producer company Venky’s (India) and finance firm Cholamandalam Investment and Finance Company have hit their respective record highs on the BSE in intra-day trade on Friday.

Venky’s (India) has surged 10% to Rs 3,230, extending its past two days 10% rally, on back of heavy volumes. The trading volumes on the counter jumped more than five-fold with a combined 377,910 shares changed hands on the BSE and NSE so far.

The company diversified its activities to include SPF eggs, chicken and eggs processing, broiler and layer breeding, genetic research and Poultry diseases diagnostic, Poultry vaccines and feed supplements, vaccine production, bio-security products, Poultry feed & equipments, nutritional health products, soya bean extract and many more. The company also supplies meat directly and indirectly to fast food chains in India such as KFC, McDonald’s, Pizza Hut and Dominos.

Analyst at Quantum Securities believes Venky’s is in a good spot with benign raw material prices and robust poultry prices.

“We will be rolling forward our earnings estimates to FY20 from the next quarter. We maintain our Buy rating. In view of the continued good performance across all verticals, improved ROCE at 26% for FY17, we maintain our price target at 20xFY19E EPS i.e. Rs 3,498,” the brokerage firm said in Q3FY18 result update.

D-Mart too hit a new high of Rs 1,293, up 4%, extending its past four days 6% gain on the BSE. The stock is quoting at its highest level since listed on March 21, 2017. As compared to the stock’s issue price of Rs 299 per share, the stock is currently trading at the gains of around 322%.

Avenue Supermarts earlier this month had acquired majority stake in Avenue E-Commerce, which becomes a wholly-owned subsidiary of the Company.

According to Crisil, going by the 2016-17 data, the e-retail market represents about 1.5% (Rs 700 billion) of the overall Rs 49 trillion retail sector in the country, indicating enormous growth potential. CLICK HERE TO READ FULL REPORT.

Cholamandalam Investment and Finance Company hit a record high of Rs 1,426, up 3.7% on the BSE in intra-day trade. The stock of finance company has outperformed the market by gaining 11% since January 30, after reported a strong set of numbers for the quarter ended December 2017 (Q3FY18). On comparison, the S&P BSE Sensex was down nearly 6% during the same period.
 

Cholamandalam Investment and Finance Company reported 53% year-on-year growth in net profit at Rs 2.49 billion in Q3FY18. Net Income Margin (NIM) for the quarter was 9.6% higher than the NIM of 8.4% in Q3FY17 and has been maintained at the same level as of Q2FY18.

“Aggressive collection efforts have started paying off. The gross non-performing assets (GNPA), net NPA and provision coverage levels have improved consistently over the quarters.  In absolute terms GNPA has been brought down by Rs 1.85 billion compared to Q2,” the company said in a press release.