DMart share price: On April 4, the BSE saw a gain of nearly 5.61 percent in shares of Avenue Supermarts, which reached a new 52-week high of Rs 4,710.15.
The stock had increased 3.66% from the previous close to trade at Rs 4,624.00 at 11.30 am. Over the previous month, the share has increased by over 20%.
DMart share price: Avenue Supermarts Hits 52-Week High After Strong Q4 Business Update
The company that owns and runs the retail chain DMart, Avenue Supermarts Ltd., released its Q4 business update on Wednesday after market hours, which led to the stock’s advances.
Avenue Supermarts reported higher standalone revenue for the fourth quarter of FY18, up 20% to Rs 12,393.46 crore. The entire count of stores was 365 as of March 31.
“The company’s statutory auditors may conduct an audit of the standalone revenue from operations for QE ending on March 31, 2024, as stated above,” the filing from the company stated.
The price target of Rs 4,695, which has already been exceeded, was set by Morgan Stanley after the announcement, and it was maintained as “overweight.”
According to the brokerage, same-store sales growth (SSSG) of 11% is primarily responsible for the revenue growth, which is higher than the 18% observed in the first nine months of FY24. The company’s SSSG for the last five quarters is the highest.
The supermarket chain’s quarterly store additions hit an all-time high on April 2, prompting CLSA to reiterate its “buy” recommendation and raise its target price for the shares to Rs 5,514 from Rs 5,307.
The revised target price, the second such adjustment in a week, is a 23 percent rise from the stock’s April 3 closing price of Rs 4,460. On March 21, the brokerage began covering the company and recommended a “buy,” pointing out the company’s promising growth prospects in unexplored markets.
With a target price of Rs 4,500, Macquarie has maintained an outperform call on the stock. Macquarie claims that while store additions are ahead of expectations, updates are generally in line with sales growth.
stable improvement in the sales growth trajectory, according to the brokerage’s note. Macquarie noted that this was a welcome change from the previous few quarters, when pre-quarterly commentary was lacking.
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