Shares of DMart operator Avenue Supermarts were climbing on Thursday after the retail chain posted a strong business update for fourth-quarter topline growth.
What Happened: Avenue Supermarts said in an exchange filing on Thursday that its revenue grew 19.8% to ₹12,393.5 crore.
However, sequentially, the figure dropped 6.4% from ₹13,247.3 crore, as third-quarter performance was boosted by the festive season.
DMart expanded its footprint by adding 24 stores in the fourth quarter, taking its total store count up to 365—a major driver of growth for the company.
See Also: X Launches Community Notes In India, Just In Time For Elections
Analyst Thoughts: Brokerages have expressed optimism about DMart’s prospects. CLSA raised the stock’s target price twice within a week in March, maintaining its “buy” recommendation, while ICICI Securities upgraded the stock to “add”.
The bullish outlook is underpinned by factors such as DMart’s attractive valuation, minimal downside and business risks, accelerated pace of store expansions and consistent revenue growth.
Following these upgrades, Avenue Supermarts shares have seen a sharp rebound.
What Happened: DMart shares gained 5.4% to hit ₹4,703.40 near the start of trade on Thursday. Over the past month, shares of the Radhakishan Damani-founded company’s stock have gained 22.28%.
Read Next: Tesla Scouts For Locations In India For A Proposed $2B-$3B Electric Car Plant
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.