Avenue Supermarts gains after foreign broker raises price target

Avenue Supermarts, which operates the DMart retail chain, rose 1.01% to Rs 4,764 after a foreign brokerage maintained its "buy" rating and raised the price target to Rs 5,600 from Rs 5,050.

The brokerage described Avenue Supermarts as a "major compounder" in Indias consumption story and expects the company to enter a phase of significant rollout acceleration. It noted that DMart is strengthening its e-commerce business, while steady growth in Same Store Sales which rose in high single digits last year has eased concerns about competition from quick commerce players.

According to the brokerage, Avenue Supermarts stands to benefit from the nearly $60 billion organised grocery retail market. It projects that the slow and steady penetration of organised retail could allow DMart to grow structurally between 18% to 22% over the long term, supporting the stocks elevated valuations.

Mumbai-based Avenue Supermarts operates the DMart retail chain, a national supermarket network offering a wide range of home and personal products under one roof. Its stores focus on three key categories food, FMCG (non-foods), and general merchandise including apparel.

The company's consolidated net profit fell 0.11% to Rs 772.97 crore despite a 16.28% jump in revenue from operations to Rs 16,359.70 crore in Q1 FY26 over Q1 FY25.

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