D-Mart Share Price: Shares of Avenue SuperMarts, the parent company of hypermarket chain D-Mart, became rocket after the excellent December quarter results. Its sales increased by 17.5 percent, which was the highest in many quarters. On this explosive result, the shares of DMart’s parent company jumped by more than 15 percent. Some investors took advantage of this boom but it is still in a very strong position. Currently on BSE it is priced at Rs 4096.50 with a jump of 13.23 percent. In intra-day it jumped by 15.13 percent to reach the price of Rs 4165.00.
Highlights of the results of D-Mart’s parent company Avenue SuperMarts
Avenue Supermarts reported standalone revenue of Rs 15,565 crore in the December quarter, which was 2 per cent above estimates. In the December quarter, its revenue grew by 17.5 percent on an annual basis and 11 percent on a quarterly basis to reach ₹ 15,570 crore. The company opened 10 new stores in the December quarter and now it has 387 stores.
How were the shares in one year?
DMart shares were at Rs 5484.00 on September 24, 2024, which is a one-year record high level for its shares. The rise of the shares stopped here and in just three months from its high level, it slipped 38 percent to the price of Rs 3400.00 last month on December 20, 2024, which is the record low level of one year for its shares. Shares recovered at lower levels and recovered more than 20 percent on the basis of buying, but it is still about 25 percent downside from one year high.
What is the next trend now?
Brokerage firms have mixed sentiments regarding D-Mart. Out of 29 analysts covering it, 11 have given it sell rating, 9 have given it buy and 9 have given it hold rating. Global brokerage firm CLSA has given it outperform rating at a target price of Rs 5360. Whereas Morgan Stanley has given it underweight rating with a target price of Rs 3702. This is because the brokerage says that although its growth has been excellent and its revenue has increased at a pace of 17.5 per cent, it is still less than its historical growth of 20 per cent.
Goldman Sachs has also given it a sell rating with a target price of Rs 3425. The brokerage says that growth showed improvement in the third quarter but due to increase in discounting, margins will have to be kept an eye on. The brokerage believes that the rapid growth of quick commerce companies may cause a setback to Avenue’s growth. Citi has also given it a sell rating with a target price of Rs 3500.
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