Damani has witnessed nearly a quarter of decline in his portfolio’s wealth so far in 2022. The current year has been broadly bearish for Damani and he has lost a hefty from the all-time high wealth that was recorded in December 2021 quarter.
As per Trendlyne data, Damani’s wealth is around ₹155,503.17 crore down by 10.53% from Q1 of 2022.
In the first quarter of this year (January – March 2022), Damani’s wealth stood at ₹173,822 crore. This was a drop of over 14% from the previous quarter.
However, so far this year, Damani’s wealth nosedived by more than 23% from December 2021 quarter.
During October to December 2021 quarter, Damani’s wealth stood at an all-time high of ₹202,248.66 crore. Notably, riding on the back of DMart’s market gains, Damani’s wealth has jumped by a breathtaking 14,512.07% in the last seven years. In December 2015, Damani’s wealth was merely around ₹1,384.12 crore.
As of May 2022, the wealth has skyrocketed by 11,134.80% since December 2015.
The data shows that Damani’s wealth reached the ₹1 lakh crore club in June 2020 when markets were struggling due to the Covid-19 pandemic’s first wave.
Damani publicly holds 14 stocks. Avenue Supermarts is the largest stock in his portfolio, and as per the data, his holding values are around ₹1,52,695 crore as of May 27, 2022. His holding in VST Industries is the second-largest in his portfolio amounting to ₹1,598.3 crore.
Other stocks that Damani holds are India Cements, Trent, United Breweries, Sundaram Finance, 3M India, Blue Dart, Metropolis Healthcare, Sundaram Finance Holdings, Astra Microwave Products, Andhra Paper, BF Utilities, and Mangalam Organics.
Experts are optimistic about a couple of stocks that Damani holds.
Bharat Chhoda and Harshal Mehta, Research Analyst at ICICI Direct said, “the company saw highest ever volume in March 2022 and expects the momentum to continue in Q1FY23 (peak season for breweries). Also, UBL is expected to see normalised peak quarter after a span of three years. Although near-term challenges remain (barley prices – which make up for 15% of input costs for UBL, is up 70% YoY, high single-digit inflation in glass), the management expects to lower the impact by taking price hikes in key states in the near term.”
“Due to long term growth story in the industry and a well-managed company with MNC parentage, we maintain our BUY rating on the stock,” the duo added.
They have set a target price of ₹1,800 i.e. 62x P/E on FY24E EPS.
On Wednesday, United Breweries stock finished at ₹1481.60 apiece up by 0.47% on BSE.
Vinay Bafna, Mitesh Shah, and Rohan John, Research Analysts at ICICI Securities said, “Metropolis Healthcare’s (Metropolis) reported Q4FY22 performance was lower than our estimates. Revenues grew 4.9% YoY to Rs3.1 billion (I-Sec: Rs3.3 billion) aided by the consolidation of hitech business. Ex-hitech, non-covid revenues declined 2.8% YoY, but grew at a 2-year CAGR of 8.6%. Covid revenues shrank 23% QoQ. EBITDA margin stood at 24.5% against our estimate of 26.8%.”
Going forward, the trio added, “Surge in competition from large brands is likely to impact realisations in the near term. However, we remain positive on the company owing to its aggressive network expansion with focus on B2C, strengthening position in the fast-growing south region with hitech acquisition, focus on increasing digital revenues, and faster shift of the market to organised players. Maintain BUY with a revised target price of Rs2,187/share (earlier: Rs2,992).”
On BSE, Metropolis shares closed at ₹1666 apiece up by 2.98%.
Richard Liu, Mehul Desai, and Sumanyu Saraf, analysts at JM Finance have upgraded their rating on DMart from HOLD to BUY after two years to take advantage of the recent steep price correction (-40% vs 7-month ago peak).
They added that “The ‘essentials’ part of the business is performing well but the discretionary portion continued to be softer than warranted. In the current hyper-inflationary environment, however, we believe the value offered by DMart’s ‘everyday low price’ proposition would stand out and contribute to growth, and the business has sufficient levers to manage its own costs to deliver on profitability.”
JM Financial analysts have set a buy target price of ₹3,675 apiece on Avenue Supermarts.
Meanwhile, Amnish Aggarwal and Anushka Chhajed, analysts at Prabhudhas Lilladher said, “We cut FY23/24 EPS estimates by 10.8% and 13.5% and DCF based target price to Rs4651 (5345 earlier) even as we upgrade to the stock to Buy post sharp correction.”
Prabhudhas analysts said, “Though 3rd covid wave impacted the business temporarily, the recovery was swift in the FMCG business while it lagged in the discretionary non-FMCG segment. We expect strong growth to sustain as D’Mart is yet to fully sweat 72 stores opened in past 24 months. We estimate 42% PAT CAGR over FY22- 24 and remain positive for long term. Bill cuts/store/day remain 33% lower than FY20, and we assume 25% and 20% lower number by FY24, complete recovery can provide upside to our estimates.”
On BSE, Avenue Supermarts shares closed at ₹3611.70 apiece up by 0.90%.
However, experts have given a sell call on Damani held Blue Dart stock.
Abhijit Mitra, Mohit Lohia, and Pritish Urumkar, Research Analyst at ICICI Securities said, “Blue Dart Express’ (BDE) management maintains strong outlook on volumes and pricing. Ground express is expected to grow at high double-digit and air express at high single-digit. The fuel surcharge mechanism will continue to offset higher fuel prices (with a month’s lag). Management maintains that belly cargo is not a competition for BDE. Management expects enough profitable opportunity in omnichannel e-commerce. Due to investments in infrastructure as capacity utilisation remains high, management expects a possible 100-200bps decline in EBITDA margins from Q4FY22 (applicable for FY23E). However, mix change (more towards ground express) is not expected to impact margins. We maintain SELL with a DCF-based target price of Rs5,553/share.”
On BSE, Blue Dart shares closed at ₹7413.50 apiece up by 1.42%. The shares hit a new 52-week high of ₹7517 apiece earlier today.