Analysts divided over DMart after muted Q1 earnings

Mumbai: Analysts were divided on the prospects of Avenue Supermarts, parent of supermarket chain DMart, after the company's June quarter earnings fell below market expectations.

DMart shares fell 3.48% to close at ₹3,705 - its lowest level in one month - as India's equity markets scaled fresh highs

Of the 19 analysts who reviewed DMart's earnings, seven of them assigned a 'buy' rating on the stock, Bloomberg data showed. Five of them have a 'sell' while another seven of them remain 'neutral' advising clients to 'hold' the stock as analysts wait for further clarity from the management.

DMart's consensus target increased 0.73% to a revised price target of ₹3,863.32 apiece, showed Bloomberg data.

Brokerage Nuvama said gross margins in the June quarter continued to undershoot.because of lower focus on the general merchandise and apparel (GMA) business.