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Buy Alfamart Franchise or Alfamart Shares: Which One Is More Profitable?

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Buy Alfamart Franchise or Alfamart Shares: Which One Is More Profitable?

Buy Alfamart Franchise or Shares

Which is smarter—buying an Alfamart store or investing in its shares? Discover which strategy brought 415% returns in just five years!

Introduction

Many people dream of owning a business like Alfamart, but did you know you can become part of Alfamart’s success story just by buying its stock? This article dives into a real-world case study comparing owning a franchise store vs. investing in Alfamart shares. The numbers might surprise you—and change how you see investing forever.

Franchise vs. Stock Investment: What’s the Difference?

The Franchise Route

To own an Alfamart store through a franchise, you’ll need a serious investment. The website states it costs around IDR 500 million just for a 100m² space. And that’s not even including land, permits, and other operational needs.

In some cases, total costs can reach over IDR 2.6 billion, as seen in an Indomaret example in Bogor. Clearly, this isn’t a small venture.

The Stock Investor Route

Alternatively, you could buy Alfamart’s stock, traded under the ticker AMRT. As of now, 100 shares cost around IDR 294,000. That’s less than the price of a smartphone, and you don’t need to manage a store, pay electricity, or handle licensing.

With that investment, you become part-owner of the entire Alfamart business and enjoy:

  • Capital gains from stock price increases
  • Annual dividends
  • Voting rights in shareholder meetings

Why Did Alfamart’s Stock Skyrocket 415%?

1. Store Expansion

In 2018, Alfamart had 15,385 stores. By 2022, that number rose to 20,798—an increase of 35%. That’s roughly 7.83% annual growth.

2. Revenue and Profit Growth

Revenue jumped from IDR 66.8 trillion in 2018 to IDR 96.9 trillion in 2022—a 45% rise.

But even more impressive was the profit increase: from IDR 650 billion to IDR 2.8 trillion, or a whopping 340% growth in net profit.

3. Improved Profit Margins

In 2018, Alfamart’s net profit margin was only 0.97%. By 2022, it had grown to 2.95%.

That’s a threefold improvement, meaning the company has become significantly more efficient and profitable per sale—even if revenue stayed flat.

Would You Still Buy AMRT Shares Today?

Despite its stellar financial growth, some investors (including the video’s creator) argue that AMRT shares may currently be overvalued. The price has increased 415%, while net profit only grew 340% over the same period.

If the stock had increased only 340%, it would be a more justified valuation. At current levels, the investor prefers to wait for a dip—perhaps to around IDR 1,140 per share—before buying.

So Which One Is Better: Franchise or Stocks?

Both have pros and cons:

  • Franchise: High capital required, but hands-on business experience and potential steady profits.
  • Stocks: Low entry point, no need for operations, potential for capital gains and dividends.

However, the biggest advantage of stocks is convenience. No permits, no property, just your smartphone and a brokerage account.

Final Thought

Alfamart has shown incredible business strength and efficiency. But whether or not to invest depends on timing and your personal financial goals. Always analyze the fair value, not just performance.

Would you rather own a minimarket or a piece of a growing retail empire? Drop your opinion in the comments below and let’s discuss!

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