I-Sec maintains Reduce on Avenue Supermarts, revises target price to Rs 3,500

ICICI Securities has maintained its Reduce call on Avenue Supermarts with a revised target price of Rs 3,500 (Rs 3,200 earlier). The current market price of Avenue Supermarts is Rs 4028. Avenue Supermarts, incorporated in 2000, is a Large Cap company with a market cap of Rs 260852.86 crore, operating in the Retail sector.

Avenue Supermarts' key products/revenue segments include Income from Retailing and Other Operating Revenue for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 14896.91 crore, down -6.88 % from last quarter Total Income of Rs 15996.69 crore and up 16.71% from last year same quarter Total Income of Rs 12764.42 crore. The company has reported net profit after tax of Rs 550.79 crore in latest quarter.

The company?s top management includes Mr.Chandrashekhar Bhave, Mr.Ignatius Navil Noronha, Mr.Ramakant Baheti, Mr.Elvin Machado, Mrs.Manjri Chandak, Ms.Kalpana Unadkat. Company has S R B C & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 65 crore shares outstanding.


Investment Rationale
ICICI Securities largely maintains its earnings estimates, modelling revenue/ EBITDA/PAT CAGR of 18%/18%/18% over FY25-27E. The brokerage retains REDUCE with a DCF-based revised target price of Rs 3,500 (vs Rs 3,200). Key upside risks are a) significant improvement in the recovery of general merchandise and apparel, and b) lower competitive intensity from quick commerce. Key downside is lower-than-expected retail expansion.

Promoter/FII Holdings
Promoters held 74.65 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.18 per cent, DIIs 9.08 per cent.