Avenue Supermarts Ltd. expects a 19.8% increase in revenue for the fourth quarter of fiscal 2024.
According to its quarterly business update released on Wednesday, the standalone revenue for the operator of the DMart retail chain is projected to rise to INR 12,393.5 crore during the January-March period, up from the same period last year.
Sequentially, the revenue is anticipated to decrease by 6.4% from INR 13,247.3 crore. However, the third-quarter performance was boosted by the festive season.
In Q4 FY24, DMart opened 24 new stores, bringing its total number of stores to 365.
Continue Exploring: DMart’s Q3 standalone revenue surges by 17.18%, reaching INR 13,247.33 Crore
Brokerages are optimistic about DMart. In March, CLSA upgraded the company’s stock twice within a week, maintaining its ‘buy’ recommendation. Meanwhile, ICICI Securities raised the stock to ‘Add’, anticipating that DMart would outperform Nestle India Ltd. in the medium term. This positive outlook is driven by several factors, including DMart’s attractive valuation, limited downside and business risk, accelerated pace of store openings, and consistent revenue growth.
Following the upgrades, the shares of Avenue Supermarts have rebounded.
DMart shares, which reached a 52-week low of INR 3,352 each on May 18 of the previous year, closed at INR 4,460.9 on the NSE in the latest session.
In the past year, the stock of the company founded by Radhakishan Damani has risen by 22.17%, while the benchmark Nifty50 has increased by 27.78%. Nonetheless, the stock has retreated from its peak of INR 5,900, reached on October 18, 2021.
Continue Exploring: Indian retail giants scale back store expansion amidst slowing consumption trends