Shares of Avenue Supermarts on Thursday, April 4, scaled a brand new 52-week excessive of Rs 4,710.15 on the BSE, gaining almost 5.61 per cent.
At 11.30 am, the inventory was buying and selling at Rs 4,624.00, up 3.66 per cent from the earlier shut. The share has surged over 20 p.c up to now month.
The inventory’s good points got here after Avenue Supermarts Ltd, which owns and operates the retail chain DMart, launched its Q4 enterprise replace after market hours on Wednesday.
In its Q4 enterprise replace, Avenue Supermarts posted an increase in standalone income of 20 per cent to Rs 12,393.46 crore (YOY). As of March 31, the full variety of shops stood at 365.
“The standalone revenue from operations for QE March 31, 2024, given above, is subject to audit by the Statutory Auditors of the Company,” the corporate’s submitting mentioned.
Following the announcment, Morgan Stanley maintained its “overweight” name and assigned a worth goal of Rs 4,695, which has already been breached.
The income progress is larger than the 18 p.c witnessed within the 9 months of FY24, largely led by similar-retailer gross sales progress (SSSG) of 11 p.c, the brokerage mentioned. The SSSG recorded by the corporate is the very best within the final 5 quarters.
On April 2, CLSA upgraded its goal worth for the inventory to Rs 5,514 from Rs 5,307, reaffirming its “buy” name, because the grocery store chain’s quarterly retailer additions reached an all-time excessive.
The revised goal worth, second such transfer in every week, represents a 23 p.c enhance over the inventory’s closing worth Rs 4,460 on April 3. The brokerage initiated protection of the corporate on March 21 with a “buy” suggestion, highlighting promising progress prospects in untapped markets.
Macquarie has maintained an outperform name on the inventory with a goal worth of Rs 4,500. According to Macquarie, the updates are broadly consistent with gross sales progress, whereas retailer additions are forward of estimates.
Steady enchancment in gross sales progress trajectory, the brokerage mentioned in its word. According to Macquarie, this was a wholesome distinction from the previous few quarters, which noticed weak pre-quarterly commentary.
