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Published: April 11, 2024
Updated: April 11, 2024

Avenue Supermart Shares at 52 week high : New Store count data boosts sentiments

Avenue Supermart, the operator of DMart, is scaling new heights with its recent stock surge, hitting a 52-week high amidst significant developments.

Expanding Horizons:

The company's shares soared by over one percent, reaching a record-breaking ₹4,784 following the inauguration of a new store in Bengaluru. This expansion marks the addition of the 366th store to its network.

Stock Performance:

As of 9:20 am, the Avenue Supermart stock was valued at ₹4,775, indicating a 1.3 percent increase from the previous day's closing. Over the past month, the stock has exhibited a remarkable rally, surging by more than 20 percent.

Revenue Growth:

In a testament to its robust performance, the company reported a 20 percent surge in standalone revenue, amounting to ₹12,393 crore in the final quarter of FY24.

Analyst Insights:

Leading brokerage firms are bullish on Avenue Supermart's prospects. Morgan Stanley, maintaining an "overweight" stance, set a target price of ₹4,695, emphasizing the company's exceptional revenue growth, driven primarily by a remarkable same-store sales growth (SSSG) of 11 percent.

CLSA's Perspective:

CLSA raised its target price to ₹5,514 from ₹5,307, underscoring the company's promising growth opportunities in previously untapped markets.

Avenue Supermart's relentless expansion, coupled with its robust financial performance, underscores its position as a frontrunner in the retail industry. With a strong trajectory of growth and strategic market penetration, the company continues to captivate investors and analysts alike.