Shares of Avenue Supermarts, the operator of DMart, soared by 10% to hit an upper circuit of ₹3,972.20 following its impressive Q3 FY25 results. The company reported a 17.5% year-on-year increase in standalone revenue, reaching ₹15,565.23 crore compared to ₹13,247.33 crore in Q3 FY24. As of December 31, 2024, DMart operated 387 stores.
Brokerage Insights
Motilal Oswal attributed DMart’s growth to its aggressive store expansion strategy. The brokerage expects the company to add approximately 18 stores in Q4, bringing the total to 40 new stores for FY25. Motilal Oswal has a 'Buy' rating on the stock with a target price of ₹5,300, suggesting a 47% upside from its current price.
Q2 Performance Overview
In Q2 FY25, DMart reported a 14.2% year-on-year increase in standalone revenue, amounting to ₹14,050 crore, up from ₹12,308 crore in Q2 FY24. Net profit rose 7.9% to ₹710 crore, with a net profit margin of 5%, slightly down from 5.3% in the previous year. EBITDA for the quarter stood at ₹1,105 crore, compared to ₹1,002 crore in the same period last year.
Stock Performance
DMart's stock has delivered an 18% return over the last five trading sessions and an 8% rise in the past month. However, it remains down by over 13% in the last six months. Year-to-date, the stock has gained 17%.
In comparison, the Nifty 50 index has shown modest performance, gaining 1.5% in the past five sessions and delivering a year-to-date return of 2%, but falling 1.3% in the last month and 0.66% over the past six months.
With its strong performance and expansion plans, DMart continues to stand out in the retail sector.
Updated on 3rd February, 2025 by MyFortune11 Team.