Avenue Supermarts Ltd (D-Mart) Posts Stellar Performance Following Q3FY25 Business Update
On January 3, D-Mart shares witnessed a significant 15% surge, hitting the upper circuit on the BSE. The company’s business update for October-December 2024 (Q3FY25) showcased an impressive 17.5% annual growth in revenue.
D-Mart’s Impressive Revenue Growth
- Standalone Revenue: ₹15,565.23 crore
- Up from ₹13,247 crore during the same period last year.
- Store Count: 387 stores as of December 31, 2024.
Avenue Supermarts Share Price Performance
- The stock opened at ₹3,790.00 today.
- Reached a high of ₹4,160.40.
- As of this article’s writing, trading at ₹4,090.55.
Mixed Brokerage Views
Morgan Stanley: Cautious Outlook
- Same Store Sales Growth (SSSG): 5.5%, better than estimated.
- Target Price: ₹3,702 (only 4% above current levels).
- Concerns over slow growth and rising competition.
Macquarie: Competition Challenges
- Highlighted Quick Commerce as a potential threat to growth.
- Gross margins improved less than expected during Q3.
CLSA: Bullish Stance
- Target Price: ₹5,360 (50% above current levels).
- Believes D-Mart’s private label strategy gives it a competitive edge.
- Standalone revenue exceeded expectations.
Past Performance Highlights
- Q2FY25 Net Profit: ₹659.6 crore (5.8% YoY growth).
- Revenue: ₹14,444.5 crore (14.4% YoY growth).
Advice for Investors
D-Mart’s strong performance makes it an attractive choice for investors. However, concerns raised by Morgan Stanley and Macquarie should not be overlooked. CLSA’s bullish view indicates promising long-term growth potential.
Is D-Mart a Good Investment Choice?
Despite the challenges, the company has demonstrated steady growth under challenging market conditions. Investors should focus on the company’s strategies and competition trends before making decisions.
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