DMart: Avenue Supermart Achieves New 52-Week High with Bengaluru Store Addition

Avenue Supermart, the operator of DMart, saw its shares surge to a new 52-week high of Rs 4,784 on April 10 following the announcement of a new store opening in Bengaluru, bringing the total number of stores to 366. 

The stock, which gained over 1 percent, was trading at Rs 4,775 at 9:20 am on the NSE, reflecting a 1.3 percent increase from the previous close.

The company’s robust performance was underscored by a 20 percent increase in standalone revenue to Rs 12,393 crore in the final quarter of FY24. This growth exceeded the 18 percent revenue increase observed in the first nine months of FY24, primarily fueled by a remarkable same-store sales growth (SSSG) of 11 percent. Notably, this marks the highest SSSG recorded in the past five quarters.

Morgan Stanley has maintained its “overweight” rating on the stock and set a price target of Rs 4,695, which has already been surpassed. Meanwhile, CLSA raised its target price to Rs 5,514 from Rs 5,307, reaffirming its “buy” recommendation. CLSA highlighted the company’s promising growth prospects in previously untapped markets.

The positive market sentiment surrounding Avenue Supermart underscores investors’ confidence in its expansion strategy and strong financial performance, positioning the company for continued success in the retail sector.

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