DMart scales Rs 2 trn market cap after strong festival-driven Q3 show

Upsides could be capped in the near term on margin pressures

After two quarters of double-digit revenue decline, Avenue Supermarts returned to the growth trajectory, posting better-than-expected performance in the December quarter of financial year 2020-21 (Q3FY21). Led by festive sales in October and November, the company reported 10 per cent growth in Q3 over the year-ago quarter. 

While the company indicated that overall sales and mix are heading towards pre-Covid levels, December was a disappointment with same store sales declining 4 per cent for stores that were two years and older. About three-fourths of its 221 stores have been in operation for over two years. While the company added a new