Analysts bearish on Avenue Supermarts post weak Q3 result; see 32% downside

Moderation in growth trajectory going ahead, owing to Covid-related disruptions, along with extremely stretched valuations, cap near-term upside in the stock price

Shares of RK Damani-owned Avenue Supermarts, operator of D-Mart chain of stores, slipped in trade on Monday as subdued growth in December quarter (Q3FY22), despite being a normal period from Covid perspective, soured sentiment.

The company reported 24.6 per cent rise in standalone net profit at Rs 586 crore for the quarter ending December 31, 2021, compared with standalone net profit of Rs 470 crore a year ago. The revenue, meanwhile, stood at Rs 9,065 crore, up 22 per cent from Rs 7,432.7 crore a year ago.

Further, the company registered a 25.6 per cent year-on-year growth in EBITDA at