Morgan Stanley has boosted its recommendation on DMart (Avenue Supermarts) to 'Overweight', predicting a potential 14% increase to reach Rs 5,188. The upgrade is based on the retail giant's strong growth trajectory, strategic store expansion, cost efficiency, and resilient value-focused strategy, even amid challenging consumer trends.
Avenue Supermarts Limited
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DMart's stock increased by 4% following a robust Q4 performance, but JM Financial expresses concerns about the current risk-reward ratio, suggesting caution despite the recent market rally.
CLSA has raised its optimistic stance on Avenue Supermarts, predicting shares could reach up to Rs 6,583 due to favorable market conditions and aggressive expansion plans with over 58 new stores planned, aiming to bring the total count to 500. The relatively low inflation rate of around 3% is contributing positively to pricing strategies for these stores.
Investment advisory JM Financial has downgraded Avenue Super, suggesting investors consider reducing their holdings, with the current market price at around 4551 rupees.
Avenue Supermarts, the parent company of DMart, reported a significant revenue surge in Q4 FY26, reaching an impressive ₹172.05 billion, highlighting the growth and continued success of their retail operations.
Avenue Supermarts executed a significant block trade on the NSE for roughly INR 18.76 crore, with around 44,000 shares exchanging hands at INR 4246.4 each.
Avenue Supermarts experienced a 7% surge in share prices, reflecting investors' positive response to the company's successful expansion of its retail stores.
D-Mart, with its latest expansion of 85 stores, now boasts 500 physical outlets in FY26. This achievement led to a significant 8% increase in the company's share price. Despite competition from quick commerce and big names like Reliance Retail and Tata's Trent, D-Mart continues to show optimism for traditional store growth.
CLSA upholds a bullish stance towards Avenue Supermarts, setting a target price of INR 6,185. The company's optimism is driven by an expansion strategy that exceeded expectations with 66 new stores, enhancing growth prospects.
CLSA anticipates a significant increase of up to 60% in DMart's parent company shares, attributed to their aggressive expansion plans. This optimistic outlook suggests a promising future for the retail chain.
CLSA remains optimistic about Avenue Supermarts, setting a target price of ₹6,185 – indicating a potential 58.5% growth. The strong performance continues with DMart opening 66 new stores in the fiscal year and Q3 net profit climbing by 17% to ₹856 crore.