Shares of Avenue Supermarts Limited, the operator of the DMart chain of stores, surged by 6 percent to reach a new 52-week high of Rs 4,715 on the morning of April 4, following the company’s announcement of a 20 percent increase in standalone revenue for the March quarter.
As of 9:40 am, the stock was trading at Rs 4,667, reflecting a 4.6 percent increase from the previous close. Over the past month, the share has seen a remarkable surge of over 20 percent.
The company reported a revenue rise to Rs 12,393 crore in the final quarter of FY24. In response to the announcement, Morgan Stanley maintained its “overweight” call and set a price target of Rs 4,695, a mark that has already been surpassed.
The revenue growth observed in the March quarter exceeded the 18 percent witnessed in the preceding nine months of FY24, primarily driven by a same-store sales growth (SSSG) of 11 percent. According to the brokerage, this SSSG figure is the highest recorded by the company in the last five quarters.
On April 2, CLSA raised its target price for the stock to Rs 5,514 from Rs 5,307, while reiterating its “buy” recommendation, as Avenue Supermarts achieved a record high in quarterly store additions.
This revised target price, the second increase within a week, represents a 23 percent surge over the stock’s closing price of Rs 4,460 on April 3. CLSA had initiated coverage of the company on March 21 with a “buy” rating, citing promising growth opportunities in untapped markets.
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