The stock of Avenue Supermarts, operator of the retail chain under the D-Mart brand, has been hitting new highs on a regular basis. This has been due to strong performance and expectation of continued robust net profit growth over the next two to three years.
The stock has gained 63 per cent since listing. Including family holdings, founder and promoter Radhakishan Damani is now worth nearly Rs 53,000 crore, making him among the richest in India. While the business is doing well and the prospects are good, is the sharp run-up a function of irrational exuberance? Or is there substance