Avenue Supermarts
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Avenue Supermarts (DMART) is navigating a complex retail landscape characterized by aggressive expansion and competitive pressures from quick commerce. Management's commitment to a disciplined growth strategy, focusing on large-basket purchases and maintaining its Every Day Low Price (EDLP) model, is crucial for sustaining revenue growth. Despite a slowdown in like-for-like growth and margin pressures, the company's robust store expansion—targeting 15-20% annual growth—positions it well for long-term market share gains. Vista's financial outlook reflects a cautious yet stable revenue trajectory, with margins expected to remain stable amid rising competition. The retail sector's overall growth, driven by recovering consumer demand and improving pricing power, supports DMART's strategic initiatives. However, the company must address challenges such as securing real estate for new stores and adapting to changing consumer behaviors. Over the next 12-24 months, key opportunities include leveraging its strong brand and expanding its footprint in Tier 2 and 3 markets, while watchpoints include the impact of quick commerce on foot traffic and the need for operational efficiencies in a competitive environment
Why We Like This Stock
- Aggressive store expansion strategy targeting 15-20% annual growth enhances market share potential
- Commitment to maintaining the EDLP model supports customer loyalty and revenue stability
- Focus on large-basket purchases positions DMART favorably against quick commerce competitors
Things To Watch Out For
- Moderating like-for-like growth and margin pressures due to competitive discounting and rising costs
- Challenges in securing real estate for new store openings may hinder expansion plans
- Increased competition from quick commerce could impact foot traffic and sales per square foot
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 50,789 | 59,358 | 68,821 | 71,656 | 84,406 |
| Profit Before Tax (Cr.) | 3,436 | 3,658 | 4,082 | 4,152 | 5,075 |
| PBT Margin | 6.8% | 6.2% | 593.1% | 5.8% | 6.0% |
| Net Profit (Cr.) | 2,531 | 2,678 | 2,981 | 3,041 | 3,717 |
| Earnings Per Share | 38.8 | 41.1 | 45.7 | 46.6 | 57.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Bernstein | ▲ Buy | 5,000 | 13-Jul-2026 |
| BofA | ► Hold | 4,525 | 07-Apr-2026 |
| CLSA | ▲ Outperform | 5,723 | 27-Jul-2026 |
| Citigroup | ▼ Sell | 3,400 | 13-Jul-2026 |
| Elara Capital | ► Accumulate | 4,700 | 29-Jul-2026 |
| Emkay Global | ▼ Reduce | 3,700 | 13-Jul-2026 |
| Geojit Financials | ▲ Buy | 5,063 | 23-Jun-2026 |
| Goldman Sachs | ▼ Reduce | 4,000 | 13-Jul-2026 |
| HDFC Securities | ► Add | 4,100 | 04-Aug-2026 |
| HSBC | ▼ Reduce | 3,530 | 28-Jul-2026 |
| ICICI Securities | ► Hold | 4,200 | 13-Jul-2026 |
| JPMorgan | ► Hold | 4,250 | 13-Jul-2026 |
| Jeffries | ► Hold | 4,500 | 04-May-2026 |
| Kotak Securities | ▼ Sell | 3,850 | 13-Jul-2026 |
| Macguire | ▼ Underperform | 3,250 | 29-Jul-2026 |
| Moneycontrol | ▼ Underweight | nan | 13-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 4,464 | 29-Jul-2026 |
| Motilal Oswal | ► Neutral | 4,015 | 29-Jul-2026 |
| Prabhudas Liladhar | ► Hold | 4,103 | 12-Jul-2026 |
| UBS | ▲ Buy | 5,500 | 03-Jul-2026 |
Company Overview
Show Company Profile
Avenue Supermarts Limited engages in the business of organized retail and operating supermarkets under the D-Mart brand name in India. The company offers food products, such as groceries, staples, processed food products, dairy, frozen products, beverages and confectionery products, and fruits and vegetables; non-food products, including home care and personal care products, toiletries, and other over the counter products; and general merchandise and apparel products comprising bed and bath products, toys and games, crockery, plastic goods, garments, footwear, utensils, and home appliances. It is also involved in the online and multi-channel retail of grocery and household products under the DMart Ready brand name. The company was incorporated in 2000 and is based in Mumbai, India.