Avenue Supermarts jumps on bargain hunting

Avenue Supermarts rose 3.52% to Rs 1,065.10 at 10:25 IST on BSE on bargain hunting triggered by reports of a foreign brokerage initiating coverage on the stock with a buy rating.

Meanwhile, the S&P BSE Sensex was down 83.77 points, or 0.26% to 31,542.86.

On the BSE, 77,000 shares were traded in the counter so far, compared with average daily volumes of 1.01 lakh shares in the past one quarter. The stock had hit a high of Rs 1,085 and a low of Rs 1,054.75 so far during the day.

According to reports, a foreign brokerage initiated coverage on shares of Avenue Supermarts with a 'buy' rating and a target price of Rs 1,586. The brokerage cited that the stock will benefit from tax reforms as grocery market share shifts to the organized sector.

Shares of Avenue Supermarts fell 5.06% in three trading sessions to settle at Rs 1,028.85 yesterday, 25 September 2017, from its close of Rs 1,083.70 on 20 September 2017.

Net profit of Avenue Supermarts rose 47.6% to Rs 174.78 crore on 35.7% rise in net sales to Rs 3598.13 crore in Q1 June 2017 over Q1 June 2016.

Avenue Supermarts is a Mumbai-based company, which owns and operates D-Mart stores. D-Mart is an emerging national supermarket chain that offers customers a range of home and personal products under one roof.

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