The mega rush

The retail sector is another industry that has traditionally traded at high valuations. The prospects of development of organised retail, especially in urban areas, and a burgeoning young population with higher disposable incomes has kept the sector on a roll. The face of retailing itself is evolving in the country. Improving urban demand, expansion, newer brands and a higher share of private labels has meant that the market's appetite for retail stocks has gone up. This was in full display at the initial public offer of Avenue Supermarts that was oversubscribed 100 times. Compared to their 10-year average valuation of 34x, retail stocks are now commanding a premium valuation of 57x. Figure 4 highligh