 "Shares of Avenue Supermarts (DMart) have gained about 5 per cent over the past week on better-than-expected June quarter (Q1FY25) performance, hopes of a recovery in discretionary demand, and margin gains going ahead.")
Avenue Supermarts (owner of DMart retail chain) shares clocked 15 per cent upper circuit in trade on BSE at Rs 4,160.4 per share on Friday. Buying in the stock sparked after the company released its Q3 business update.
Around close, Avenue Supermarts shares were up 11.21 per cent at Rs 4,023.25 per share on the BSE. In comparison, the BSE Sensex was down 0.90 per cent at 79,223.11.
The market capitalisation of the firm stood at Rs 2.61 trillion. In its Q3 update, Avenue Supermarts said its standalone revenue from operations grew 17. 4 per cent year-on-year (Y-o-Y) at Rs 15,565.23 crore compared to Rs 13,247.33 crore a year ago.
DMart’s total number of stores as of December 31, 2024 stood at 387.
Global brokerage Citi said, “We believe throughput continues to be impacted due to adverse product mix, store additions in smaller towns, and increasing competitive intensity from quick commerce. Store additions during the quarter were 10,” Citi said in its note.
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 "Shares of Avenue Supermarts (DMart) have gained about 5 per cent over the past week on better-than-expected June quarter (Q1FY25) performance, hopes of a recovery in discretionary demand, and margin gains going ahead.")
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The brokerage has maintained ‘sell’ rating with a target price of Rs 3,500 per share, implying 57x Sep’26 P/E.
Meanwhile, Motilal Oswal maintained a ‘buy’ rating on the stock with a target price of Rs 5,300 per share on DMart. According to analysts at Motilal Oswal, Avenue Supermarts’ annualised revenue/store is back on track with over 4 per cent Y-o-Y growth to Rs 16.3 crore as compared to modest 1 per cent Y-o-Y growth in Q2.
Moreover, its annualised revenue/sq ft was also up around 3 per cent Y-o-Y on Motilal Oswal's estimate to Rs 388,000/sq ft as compared to flat Y-o-Y in Q2.
In the September quarter, Avenue Supermarts' consolidated net profit increased by 5.77 per cent, reaching Rs 659.58 crore, compared to Rs 623.56 crore during the same period last year.
Its revenue for the quarter saw a 14.41 per cent rise, amounting to Rs 14,444.5 crore from Rs 12,624.37 crore Y-o-Y.
The company also posted a significant jump in earnings before interest, taxes, depreciation, and amortisation (Ebitda), which grew by 29.3 per cent to Rs 1,093.8 crore. This compares to Rs 846 crore in the previous year.
In the past one year, Avenue Supermarts shares have gained 2.27 per cent against the Sensex's rise of 12 per cent.
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 "Domestic markets on Wednesday entered correction territory, with the benchmark Nifty and the broader market indices — Nifty Midcap 100 and Nifty Smallcap 100 — declining more than 10 per cent from their all-time highs.")
