Product mix, margin concerns in the near term for Avenue Supermarts

Q1 revenues, too, were lower than expectations

The stock of Avenue Supermarts, which runs the DMart chain of stores, has been on an uptrend on expectations that it would be a key beneficiary of reopening post the lockdowns in multiple states.

Since its lows at the end of April the stock has gained over 23 per cent as the Street expects some traction for its online store, DMart Ready and continued market share gain in the retail space. What would have boosted sentiment is expectation that it would be included in the Nifty50 basket with the index to be reconstituted shortly.  

The near-term trigger, however, would be