DMart shares fall 3% as Goldman Sachs cuts target price to Rs 3,425
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Shares of Avenue Supermarts, the parent firm of hypermarket chain DMart, skidded as much as 3.1% on Wednesday to Rs 3,699.65 on BSE after brokerage firm Goldman Sachs slashed its target price on the company to Rs 3,425 per share, down from Rs 4,000 earlier, indicating a downside of 7.4% on the current price. While maintaining its "sell" recommendation on the stock, Goldman Sachs reiterated its bearish sentiments about the retail major, adding that it believes that D-Mart's competitive moat is facing increasing pressure. Goldman Sachs said DMart has been increasing its price discounts in a bid to maintain its competitive advantage. The price discounts offered by DMart for a basket of grocery produce have risen to 25% over MRP in December, up from a range of 15% over MRP in July this year. The brokerage further said that DMart does not have any competitive advantage in fresh food categories in urban settings, and large section...