Latest news with #AvenueSupermarts
Time of India
07-05-2025
- Business
- Time of India
I-Sec maintains Reduce on Avenue Supermarts, revises target price to Rs 3,500
ICICI Securities has a 'Reduce' call for Avenue Supermarts. The target price is revised to Rs 3,500. Avenue Supermarts' revenue, EBITDA and PAT are expected to grow. The company reported a consolidated total income of Rs 14896.91 crore for the quarter ended March 31, 2025. Upside risks include better general merchandise recovery. Downside risk is lower retail expansion. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads (Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.)
Economic Times
07-05-2025
- Business
- Economic Times
I-Sec maintains Reduce on Avenue Supermarts, revises target price to Rs 3,500
Agencies Avenue Supermarts' key products/revenue segments include Income from Retailing and Other Operating Revenue for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 14896.91 crore, down -6.88 % from last quarter Total Income of Rs 15996.69 crore and up 16.71% from last year same quarter Total Income of Rs 12764.42 crore. The company has reported net profit after tax of Rs 550.79 crore in latest quarter. The company?s top management includes Bhave, Navil Noronha, Baheti, Machado, Chandak, Unadkat. Company has S R B C & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 65 crore shares outstanding. Live Events Investment Rationale ICICI Securities largely maintains its earnings estimates, modelling revenue/ EBITDA/PAT CAGR of 18%/18%/18% over FY25-27E. The brokerage retains REDUCE with a DCF-based revised target price of Rs 3,500 (vs Rs 3,200). Key upside risks are a) significant improvement in the recovery of general merchandise and apparel, and b) lower competitive intensity from quick commerce. Key downside is lower-than-expected retail expansion. Promoter/FII Holdings Promoters held 74.65 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.18 per cent, DIIs 9.08 per cent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ICICI Securities has maintained its Reduce call on Avenue Supermarts with a revised target price of Rs 3,500 (Rs 3,200 earlier). The current market price of Avenue Supermarts is Rs 4028. Avenue Supermarts, incorporated in 2000, is a Large Cap company with a market cap of Rs 260852.86 crore, operating in the Retail Supermarts' key products/revenue segments include Income from Retailing and Other Operating Revenue for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 14896.91 crore, down -6.88 % from last quarter Total Income of Rs 15996.69 crore and up 16.71% from last year same quarter Total Income of Rs 12764.42 crore. The company has reported net profit after tax of Rs 550.79 crore in latest company?s top management includes Bhave, Navil Noronha, Baheti, Machado, Chandak, Unadkat. Company has S R B C & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 65 crore shares Securities largely maintains its earnings estimates, modelling revenue/ EBITDA/PAT CAGR of 18%/18%/18% over FY25-27E. The brokerage retains REDUCE with a DCF-based revised target price of Rs 3,500 (vs Rs 3,200). Key upside risks are a) significant improvement in the recovery of general merchandise and apparel, and b) lower competitive intensity from quick commerce. Key downside is lower-than-expected retail held 74.65 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.18 per cent, DIIs 9.08 per cent. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Economic Times
06-05-2025
- Business
- Economic Times
Jignanshu Gor believes DMart doesn't need to join Q-commerce rush. Here's why
Amid rising competitive intensity from quick commerce (Q-commerce) platforms, Avenue Supermarts, the parent company of DMart, is not likely to join the rapid delivery race but is instead expected to sharpen its focus on delivery timelines, assortment depth, and overall value proposition. ADVERTISEMENT In an interaction with ET Now, Jignanshu Gor of Bernstein India addressed the longstanding thesis around DMart's vulnerability to Q-commerce rivals and outlined how the retailer may respond. Gor, whose research house tracks both Avenue and Q-commerce trends, noted that while investor concerns about the overlap between DMart's customer base and quick commerce users have persisted for months, this overlap might be overstated. Addressing the possibility of DMart entering the Q-commerce space directly, Gor stated, 'Will they join them? I do not think so.' Instead, he pointed out that 'they have been working at it for the last nine months, but I do not think they should even plan to join it.' According to him, DMart is more likely to strengthen its delivery capabilities and expand its product assortment, supported by greater investment that one can see in DMart this year or DMart Ready. Gor stated that while Q-commerce will continue to evolve, 'I do not think the entire grocery retailing in India is going to shift online and if it does not shift online, then DMart is one of the two large big box retailers left and arguably given margin profile, etc., the better run retailer as well.' ADVERTISEMENT Also read: Who is Greg Abel and is he able enough to fill Warren Buffett's $1.2 trillion shoes? 'There is a reason why we think that when it comes to pure FMCG or grocery items, a big box retailer is able to provide value, which quick commerce will find it difficult to do on a sustainable basis,' he said. ADVERTISEMENT He acknowledged that the thesis around competition from Q-commerce has been oscillating in the last six months, particularly after DMart's Q2 numbers, which were interpreted by some as indicating pressure from rapid delivery Gor stressed that 'DMart can and will compete better on offering value to customers and offering choice to customers, so that overlap should get over and they will be able to survive or thrive in quick commerce.' (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
06-05-2025
- Business
- Time of India
Jignanshu Gor believes DMart doesn't need to join Q-commerce rush. Here's why
Amid rising competitive intensity from quick commerce ( Q-commerce ) platforms, Avenue Supermarts , the parent company of DMart , is not likely to join the rapid delivery race but is instead expected to sharpen its focus on delivery timelines , assortment depth, and overall value proposition. In an interaction with ET Now, Jignanshu Gor of Bernstein India addressed the longstanding thesis around DMart's vulnerability to Q-commerce rivals and outlined how the retailer may respond. Gor, whose research house tracks both Avenue and Q-commerce trends, noted that while investor concerns about the overlap between DMart's customer base and quick commerce users have persisted for months, this overlap might be overstated. Addressing the possibility of DMart entering the Q-commerce space directly, Gor stated, 'Will they join them? I do not think so.' Instead, he pointed out that 'they have been working at it for the last nine months, but I do not think they should even plan to join it.' According to him, DMart is more likely to strengthen its delivery capabilities and expand its product assortment, supported by greater investment that one can see in DMart this year or DMart Ready. Gor stated that while Q-commerce will continue to evolve, 'I do not think the entire grocery retailing in India is going to shift online and if it does not shift online, then DMart is one of the two large big box retailers left and arguably given margin profile, etc., the better run retailer as well.' Also read: Who is Greg Abel and is he able enough to fill Warren Buffett's $1.2 trillion shoes? 'There is a reason why we think that when it comes to pure FMCG or grocery items, a big box retailer is able to provide value, which quick commerce will find it difficult to do on a sustainable basis,' he said. He acknowledged that the thesis around competition from Q-commerce has been oscillating in the last six months, particularly after DMart's Q2 numbers, which were interpreted by some as indicating pressure from rapid delivery players. However, Gor stressed that 'DMart can and will compete better on offering value to customers and offering choice to customers, so that overlap should get over and they will be able to survive or thrive in quick commerce.' ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Business Standard
05-05-2025
- Business
- Business Standard
Higher competitive pressures to cap DMart's margins in near term
The stock of India's largest listed pure-play retail company, Avenue Supermarts (DMart), has slipped over 10 per cent from its monthly highs. A weak operational performance in the March quarter and a muted near-term outlook due to intense competitive pressures and higher costs could lead to downward pressure on the stock. While the stock had dipped by 3.44 per cent in early trade on Monday, it recovered slightly to close 1 per cent lower at Rs 4,022. The retailer's revenue performance was healthy, registering year-on-year (Y-o-Y) growth of 16.7 per cent, aided by network expansion as well as higher same-store sales (SSS) growth. While the company's store area grew 14 per cent, the rest was accounted for by a 2.7 per cent increase in revenue per store. SSS growth for units over two years old came in at 8.1 per cent. The company added 28 stores in the quarter, taking the total to 415. The Street, however, was disappointed with the margin performance and cautious management commentary. Even as revenue growth was healthy, led by robust footfalls, operating profit growth was only a quarter of the topline gain at 4.4 per cent. Gross margins were down 24 basis points Y-o-Y and 59 basis points sequentially due to a lower share of higher-margin general merchandise and apparel, while the share of FMCG increased. At the operating level, the profitability fall was sharper — 80 basis points over the year-ago quarter and 115 basis points on a quarter-on-quarter (Q-o-Q) basis. The operating profit margin was the lowest in 12 quarters. The company pointed out that increased competitive intensity in the FMCG space impacted gross margins. Further, a surge in wages for entry-level positions due to demand–supply mismatch of skilled workforce, and continued investments in improving service levels — including faster turnarounds on availability, checkouts, and future store openings — weighed on operating profits. The company also had a larger number of store openings during the quarter. Given the Q4 performance and management commentary, Goldman Sachs Research has cut its earnings estimates and maintained a 'sell' rating. Analysts led by Arnab Mitra at the brokerage have cut their FY26/FY27 earnings per share estimates by 6 per cent and 4 per cent, respectively, factoring in lower operating profit margins due to increased competitive intensity and inflation in areas like employee costs. The recent fund-raising by quick commerce (QC) players and competitive pressures on pricing could weigh on DMart's growth and margins, at least in the near term, believes Motilal Oswal Research. Over the long term, however, analysts led by Aditya Bansal say that DMart's value-focused model and superior store economics will ensure competitiveness and customer relevance despite the convenience offered by QC players. While the brokerage has cut its FY26–27 operating profit forecast by 5 per cent each due to heightened competitive intensity and rising retailing costs, it has reiterated its 'buy' rating with a lower revised target.
