Despite good Q3 numbers, experts sceptical about DMart's growth and margins

The company reported strong revenue, Ebitda growth in Q3, but analysts sceptical of this trend sustaining

The stock of Avenue Supermarts (Avenue) surged over 3 per cent in intraday trade on Monday before closing with a 1.6 per cent gain at Rs 1,905.95 apiece, on a day the BSE Sensex was up 0.62 per cent. Strong growth in top line in the December 2019 quarter (Q3) and an even higher increase in operating profit amid a challenging consumption scenario enthused the Street. 

The company, which operates the DMart retail chain of supermarkets in India, announced its Q3 numbers on Saturday. Some analysts, however, now also believe that the pace of growth in top-line may decline further, and