Nine-month 2023 result of supermarket operator AllDay Marts showed a gross profit of 1.5 billion from total sales of 7.4 billion translating into a gross profit margin of 20.22%.
While another supermarket operator, MerryMart Consumer, reported a gross profit of 0.9 billion out of total sales of 5.8 billion for the nine-month period of 2023, generating a gross profit margin of 15.79%.
Fatter margins does not translate to higher valuation
ALLDAY despite having higher profit margin and sales than MerryMart, is valued less than MerryMart.
MerryMart’s 26.28 P/E leaves ALLDAY’s 8.35 in the dust. ALLDAY is valued by the market below book value at 0.5701 while MerryMart is valued 3.51X book value.
In a one-year period MerryMart has fallen only 16.28% while ALLDAY has fallen 32.94%.
MerryMart’s holders hope not to catch ALLDAY’s fall.
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