DMart’s Revenue Rose Over 15%

DMart’s Revenue Rose Over 15%


D-Mart parent Avenue Supermarts Ltd.’s standalone revenue from operations rose 15.4% for the second straight quarter to Rs 16,218.8 crore, according to an exchange filing on Friday.

The company’s store count in the second quarter of this fiscal rose to 432, while at the end of first quarter it was at 424 stores.

Earlier this month, UBS Global Research hiked Avenue Supermarts’ target price and maintained a Buy rating on the stock because of its strong growth outlook. The brokerage said that DMart is a compounding growth story while stock provides a favourable risk-reward ratio.

UBS Global Research raised the target price to Rs 5,600 from Rs 5,050.

Despite the recent increase in the share price, the risk-reward ratio remained favourable, according to the brokerage. Its base case is a three-year revenue CAGR of 20% which limits any material valuation derating.

The bull case is that Avenue Supermarts can report 22% revenue growth because of faster network rollout and growth in DMart Ready, UBS Global Research said. This could imply potential upside to Rs 6,600 for the stock price.



Source link