Most brokerages bearish on DMart despite strong Q2
Most brokerages see downside in shares of Avenue Supermarts, parent of supermarket chain DMart, even as the company reported a 110% rise in September quarter net profit. Shares of Avenue Supermarts ended down 8.16% at Rs 4,894.90 on Monday.
By ET Bureau | Updated:
Agencies
HDFC Securities retained its sell rating on the stock, saying that the company's profitability and unit economics have not yet caught up with pre-pandemic levels.
Mumbai: Most brokerages see downside in shares of Avenue Supermarts, parent of supermarket chain DMart, even as the company reported a 110% rise in September quarter net profit.
Shares of Avenue Supermarts ended down 8.16% at Rs 4,894.90 on Monday. HDFC Securities retained its sell rating on the stock, saying that the company's profitability and unit economics have not yet caught up with pre-pandemic levels. Axis Securities has downgraded the stock to sell from reduce saying that DMart trades at market-cap per store of $187 million which is about 4 times premium to Walmart's peak valuations in December 1999.
Morgan Stanley has also downgraded the stock to equal-weight from under-weight but revised target price higher to Rs 4,338 from Rs 3,268.
