Following a favorable business update for the third quarter of FY 2025, Avenue Supermarts' share price increased by 10% in early trading on December 3.
DMart share price: After a solid business update for the third quarter of the fiscal year 2024-2025 (Q3FY25), Avenue Supermarts' (DMart) share price jumped 10% to reach its upper circuit in the opening session on Friday, December 3.According to the company, its standalone revenue from operations for the most recent quarter was ₹15,565.23 crore, which was 17.49% more than the ₹13,247.33 reported for the same quarter last year. Additionally, the amount exceeds the revenues reported for the three December quarters prior.
During the quarter, the company opened 10 new locations, increasing its total number of stores from 377 in the September quarter to 387.
One stock in Radhakishan Damani's portfolio is Avenue Supermarts. According to the shareholding pattern for the September 2024 quarter, the ace investor owns 37.22 percent of the company. Damani falls under the category of firm promoter as well. He had 24.22 crore shares at the end of the September quarter.
Impact on Stocks
On the BSE, Avenue Supermarts' share price jumped 15% to ₹4,160.40 a share after the company's impressive earnings announcement.
The stock was 4.76 percent higher at ₹3,790 when it began on the BSE than when it closed at ₹3,617.75 crore. It quickly increased in value to trade at ₹4,160.40.
The share price of Avenue Supermarts is still 32% below its 52-week high of ₹5,484 achieved in September 2024, notwithstanding today's dramatic increase. However, the stock is trading over 22 per cent higher than its 52-week low of ₹3,400 hit in December 2024.
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With a 13% YoY store expansion and probably high single-digit same-store sales growth (SSSG), DMart announced standalone revenue growth of 17.5% YoY to ₹156 billion, exceeding our estimate of ~15% YoY growth, according to brokerage Motilal Oswal Financial Services (MOSL). The sales growth restored to the 17–20% YoY range following a comparatively weaker 2Q, it stated.
According to MOSL, DMart's primary growth engine continues to be a surge in store additions. In the March quarter, it plans to open about 18 new stores, increasing the total number of stores to 40 in FY25.
On DMart, the brokerage has a BUY recommendation with a ₹5,300 target price.
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