At 10:29 am; the stock was up 6% at Rs 796, with m-cap of Rs 49,739 crore, the BSE data shows. A combined 6.49 million equity shares representing 1% of total equity capital of Avenue Supermarts changed hands on NSE and BSE.
In past three trading sessions, the stock has rallied 27%, after Avenue Supermarts said rating agency CRISIL upgraded ratings on the bank facilities of the company. On comparison, the S&P BSE Sensex was down 0.76% during the period. The stock has gained 167% against its initial public offer (IPO) price of Rs 299 per share.
US-based brokerage JP Morgan in a report released on Friday initiated coverage on the stock with a “neutral” rating.
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Avenue Supermarts owns the D-Mart retail chain, India’s most profitable retailer which follows a unique ownership model and caters to more of staple consumer products which have very high inventory turnover.
According to analyst at Systematix Institutional Research, a gradual uptick in consumer sentiment, post the demonetization shock, and upcoming GST (significant benefit for organized players) are the two immediate drivers that we expect for an improvement in performance of retail sector, although some temporary GST impact cannot be ruled out.
Meanwhile, Aditya Birla Fashion & Retail (up 4% at Rs 165), Future Retail (3% at Rs 291) and Arvind (1% at Rs 399) are among other retail sector stocks up in the range of 1% to 4% as compared to 0.05% rise in the benchmark index.
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