Avenue Supermarts, which owns and operates the retail chain DMart, reported its quarterly business update on Tuesday.
What Happened: The company’s standalone revenue from operations came in at ₹13,711.87 crore in the quarter ended June, an 18.36% rise from the same quarter a year ago, when its topline clocked in at ₹11,584.44 crore.
The retailer said it had 371 stores at the end of June 2024, which is an addition of six stores during the quarter.
Analyst Views: Citi has a "sell" call on DMart's stock with a target price ₹3,400, noting that the quarterly update indicated no acceleration in the firm’s growth.
Meanwhile, Morgan Stanley maintained an "overweight" rating on the stock with a target price of ₹5,123, saying the firm's quarterly growth was below expectations but noted that operational metrics continue to improve. Macquarie was also upbeat on the stock with an “outperform” rating and a target of ₹5,150.
See Also: HDFC Bank Shares Soar 3% To All-Time High On Hopes Of Increased Inflows From MSCI Rejig
Motilal Oswal has a “neutral” rating on the stock with a target price of ₹5,310.
Last quarter, DMart reported a net profit of ₹563.1 crore, which was a 22% year-on-year increase. DMart's revenue from operations stood at ₹12,726 crore, up 20% compared with ₹10,594 crore in the same period the previous year.
The company, founded by Radhakishan Damani, sells a wide variety of fast-moving consumer goods products and is known for offering hefty discounts. Despite being one of the lowest-priced retailers, it has a market capitalisation of over ₹3 lakh crore.
Price Action: Shares of Avenue Supermarts were volatile on Wednesday, trading 0.17% up at ₹4,782.10 in the morning session.
Read Next: RVNL Shares Rebound After 2 Days On Another Order Win From Central Railways
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.