The total expenses of Avenue Supermarts increased by 27.02 per cent to Rs 10,788.86 crore in the third quarter of FY 2022-23.
DMart Share Today: Share price of Radhakishan Damani’s DMart or Avenue Supermarts hit a 6-month low of Rs 3,645 on NSE today
dmart share today: Radhakishan Damani’s DMart or Avenue Supermarts share price today hit a 6-month low of Rs 3,645 on the NSE. The owner and operator of DMart chain of retail outlets reported a 6.6 per cent rise in consolidated profit after tax at Rs 590 crore for the quarter ended December 2022, as against Rs 553 crore a year ago. Analysts had estimated a net profit of Rs 646.5 crore.
Total revenue for Avenue Supermarts for the October-December quarter stood at Rs 11,569 crore, as against Rs 9,218 crore last year, the company said in a stock exchange filing on January 14, indicating a year-on-year growth of 25.5 per cent. Is.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the company during the period under review stood at Rs 965 crore as compared to Rs 866 crore in the corresponding quarter last year, registering a growth of 11.4 per cent. However, the EBITDA margin declined from 9.4 per cent to 8.3 per cent.
What should investors do now?
Speaking on the reasons for the fall in Avenue Supermarts share price, Ravi Singhal, CEO, GCL Securities said, “Radhakishan Damani’s Avenue Supermarts share price has been under pressure as its Q3 results came in below market expectations, especially On the margin front. Hence, the stock is in a sell zone since morning deals on Monday. However, risk averse traders are keeping a stop loss at Rs 3,500 level for a near term target of Rs 3,800 around Rs 3600 can buy.
Prabhudas Lilladher has cut D’Mart’s EPS estimates by 4.2 per cent/4.3 per cent/4.0 per cent for FY23/24/25 and target price to Rs 4,675 (earlier 4854) has been done. Ebitda margin declined to 8.3 per cent).
Margins were impacted by a declining mix on account of slower growth in apparel and general merchandise. Any meaningful improvement can be used as a good entry point. Write by,” it said.
Motilal Oswal maintained ‘Neutral’ rating on the stock with a target price of Rs 4,050, given the expensive valuations. Recovery of revenue per store indicates that DMart has crossed pre-Covid levels; However, approximately 20 percent higher average store size and weaker demand in the non-food category impacted revenue per square foot.
Broking House cuts its FY23E store growth from 45 to 40 and FY23/24 PAT down to 8 per cent/3 per cent, resulting in EBITDA/PAT CAGR of 28 per cent/26 per cent over FY23-25 Gone.
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