DMart shares tumble 5% despite 15% YoY jump in revenue. Should you invest?
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Shares of Avenue Supermarts-operated DMart tumbled 5% to their day’s low of Rs 4,701.90 after the company reported 14% growth in its standalone revenues at Rs 14,050 crore for the second quarter and added a net of 6 stores. The total number of stores at the end of September 2024 stood at 377. The Radhakishan Damani owned company aims to add 45 stores in FY25 with the medium term band at 45-60 stores per annum. Post the update, brokerage firms have revised their views on the stock. Here’s what they said: Macquarie: Outperform| Target price: Rs 5,600 Sales growth has moderated from Q1 levels while store additions are slightly below estimates. Sequential moderation in gross margins are also expected due to a change in the product mix. Also read: HDFC Bank Q2 Update: Deposits jump 15% YoY, advances under management surge 8% Goldman Sachs: Sell| Target price: Rs 4,050 Goldman Sachs has maintained a Sell rating on Avenue Supermarts with a targe...