Billionaire Radhakishan Damani and his family, which promote Avenue Supermarts Ltd (DMart), saw notional value of their stakes in the retailer surging, following a 5.6 per cent rally on the counter post March quarter update.
RK Damani, who was worth $21.2 billion at last count, as per Bloomberg Billionaire index, saw his net worth rising, as DMart shares jumped 5.6 per cent to hit a fresh 52-week high of Rs 4,710.15 on BSE. The company's market capitalisation also topped the Rs 3 lakh crore mark.
This is after the retailer said its standalone revenue from operations came in at Rs 12,393.46 crore for the March quarter against Rs 10,337.12 crore in he year-ago quarter.
As per shareholding data, Radhakishan Shivkishan Damani owned 14,98,48,238 shares or 23.03 per cent in DMart as on December 31. His wife Shrikantadevi Radhakishan Damani owned 65,00,000 shares or 1 per cent stake in Avenue Supermarts while brother Gopikishan Shivkishan Damani held 3,64,69,012 shares or 5.60 per cent stake. Overall, promoters and promoter entities held 74.65 per cent stake in Avenue Supermarts at the end of December quarter. March quarter shareholding will be out shortly.
Damani's 23.03 per cent stake was worth Rs 66,805 crore as on Wednesday, which jumped to Rs 69,430.22 crore, up Rs 2,625 crore. Gopikishan's 5.6 per cent stake in DMart was worth Rs 16,251.43 crore on Wednesday, which moved up 16890.06 crore, up Rs 638 crore. Shrikantadevi's 1 per cent stake i now worth Rs 3,016 crore against Rs 2,902 crore, up over Rs 100 crore in a day.
Motilal Oswal said DMart's strong sales growth for the March quarter was supported by high productivity and footprint, and was largely in line with its estimates. The revenue growth, it said, was driven by 7 per cent growth in revenue per store and a robust 13 per cent YoY increase in store additions.
The revenue per store has grown 7 per cent YoY to Rs 140.40 crore against a 5 per cent YoY growth in the December quarter.
The revenue per square feet has grown 5 per cent YoY to Rs 33,451, and hence, the gap between revenue oer store and revenue per square foot stood at 2 per cent, Motilal Oswal said.
"We have seen growth in revenue/sqft in the last 3-4 quarters (each quarter growing by around 4-6 per cent YoY). In the last three years, revenue/sqft remained subdued due to addition of larger store sizes and weak discretionary spending (contributing 23- 25 per cent of revenue). However, this trend has been gradually reversing in the last 3-4 quarters, as evidenced by the narrowing gap between the revenue/store growth and revenue/square foot growth," it said.
Following a period of subdued store additions in 9MFY24 (adding 17 stores), the company added 24 stores in the December, taking the total count to 365 stores. Motilal Oswal has a target of Rs 4,700 on the stock.