 "Shares of Avenue Supermarts (DMart) have gained about 5 per cent over the past week on better-than-expected June quarter (Q1FY25) performance, hopes of a recovery in discretionary demand, and margin gains going ahead.")
Shares of Avenue Supermarts, the operator of DMart retail chain of supermarkets and hypermarkets, have seen a correction of about 30 per cent from highs of Rs 5,400 levels in September. Analysts are calling for earnings downgrades given moderate July-September quarter (Q2FY25) results and rising competition from Quick Commerce (QCom) and stiff competition from Amazon and Flipkart which are also now in QCom.
While the earlier QCom players offered a price advantage to DMart, Flipkart Minutes and Amazon Tez are slightly below DMart on price, while pushing QCom convenience. Zepto’s discounts for orders above Rs 900 also brings it below
