Analysts bearish on DMart parent after co misses Q1 view

Mumbai: Most brokerages have maintained a bearish view on Avenue Supermarts as its June quarter earnings missed consensus estimates owing to a pointy decline in gross margins.

They see restricted triggers for the inventory within the close to time period and see a restoration in demand solely after the September quarter. Some stated valuation is pricey and limits the opportunity of having a constructive view on the inventory.

The proprietor of grocery store chain

reported a 132.3% soar in web revenue from yr in the past degree to Rs 115 crore however missed estimates.

UBS and Kotak Institutional Equities have maintained a promote score. IIFL has maintained add score with a goal value of Rs 3,400 and Edelweiss has retained maintain score. Motilal Oswal has maintained a impartial stance. ICICI Securities and Axis Securities have maintained a cut back score.


Morgan Stanley has downgraded the inventory to equal-weight from obese however revised goal value greater to Rs 3,268 from Rs 3,218.

“…long-term bullish view on DMart stays intact…as we anticipate a full-fledged demand restoration solely publish the second quarter of FY22 and see restricted triggers for close to time period inventory efficiency, we transfer to the sidelines awaiting a greater entry level,” stated Morgan Stanley.

Motilal Oswal has maintained a impartial score with a goal value of Rs 3,220.

“Costly valuations; threat of a moderation in progress, owing to robust traction for on-line retailers in a post-COVID world; and the presence of deep pocket gamers like Amazon and Reliance Retail restricts the near-term upside,” stated Motilal Oswal.


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