DMart shares rise 4% as September quarter revenue jumps 36% YoY

Shares of Radhakishan Damani-backed , which runs the DMart chain of retail stores, rose nearly 4% in Tuesday's trade after the company reported a standalone revenue from operations of Rs 10,385 crore in the September quarter. The revenue increased 35.8% as compared to the year-ago period.

Citing September quarter data, brokerage firm gave a neutral call on the stock with a reduced target price of Rs 4,100, which is 8.6% lower from the current market price of Rs 4,485.60.

“Standalone revenue grew 36% YoY to Rs 10,385, 6.4% below our estimate. While overall revenue growth remained strong, calculated LTL (like-to-like) growth in 2QFY23 was 2% YoY when adjusted for footprint addition. As compared to pre-COVID levels of 2QFY20, this was lower by 10% (the company doesn’t provide quarterly SSSG),” Motilal said in the report.

Our channel checks indicate a soft performance in the value segment, which may have hurt the ‘non-Staple’ category segment that constitutes 25-30% of the revenue pie, Motilal added.

However, brokerage firm Prabhudas Lilladher has a buy call on Avenue Supermarts with a target price of Rs 5118.

At 11.02 am, the scrip was trading 1.63 per cent higher at Rs 4,498 over its last day’s closing price of Rs 4,425.65 a piece. The stock has surged nearly 10 per cent in the last six months, while it has fallen about 5 per cent year-to-date.

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