Avenue Supermarts: Brokerage bullish on DMart shares, great chance to earn 19% profit Brokerage firms are looking bullish on the shares of Avenue Supermarts, the company that operates the retail chain DMart. Brokerage house Prabhudas Lilladher has given a Buy rating to Avenue Supermarts in a research report with a target price of Rs 4,587. Last Friday, the stock saw a marginal gain of 0.48 per cent and closed at Rs 3,840 on the NSE. This means that the brokerage firm expects an upside of over 19 per cent from the current share price. Explain that the 52-week high of the stock is Rs 4,609.
Brokerage Bullish on DMart Shares, Expects 19% Profit
The company has recently released its quarterly results. Avenue Supermarts has recently announced the results for the first quarter of the financial year 2023-24. The consolidated net profit of the company increased by 2 percent to Rs 658.71 crore in the June quarter. The company’s profit in the same quarter last year was Rs 642.89 crore. However, the company’s June quarter results were below experts’ estimates.
Avenue Supermarts’ consolidated revenue grew 18.2 per cent year-on-year to Rs 11,865.44 crore. The figure was Rs 10,038.07 crore in the same period a year ago.
Avenue Supermarts Announces Q1 FY 2023-24 Performance
What is the opinion of the brokerage firm? Brokerage firm Prabhudas Lilladher in its research report has advised long-term investment in this stock. The brokerage said, “Dmart needs to re-structure its apparel business in view of the new threat perception, which will take a few quarters for a turnaround.” Is in good shape even with the increase in delivery charges.”
The brokerage further said, “We expect 13% growth in bill deleveraging, but a 6% decline in average bill value (6% above 2H levels). We expect GM/FV growth in FY24 before recovery starts in FY25.” Projecting 40/33bps decline in EBIDTA margin. May see 15.3% PBT growth in FY24 and 22.2% in FY23-25.”
