Avenue Supermarts, the owner of the popular DMart retail chain, (NSE: DMART), traded in red on Monday as Dalal Street sentiments turned negative tracking weak global cues. DMart share price slumped more than 2 per cent or Rs 99 apiece to trade at 4215.15 at NSE at 10:22 am. On BSE, the stock quoted a price of Rs 4,207.

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Earlier on Saturday, Avenue Supermarts released its September quarter earnings. The company reported a 64.13 per cent rise in its consolidated net profit at Rs 685.71 crore in the second quarter of FY23.

Brokerages on DMart retail chain owner Avenue Supermarts

On the back of strong second-quarter results, several brokerages have revised their ratings for Avenue Supermarts, the owner of the DMart retail chain.

JP Morgan on Avenue Supermarts (CMP: 4306) 

JP Morgan has maintained the rating of underweight and reduced the target to Rs 3445. 

Morgan Stanley on Avenue Supermarts (CMP: 4306) 

The brokerage has maintained the rating of overweight with a target of Rs 4590 

Citi on Avenue Supermarts (CMP: 4306) 

Maintain Sell, Target raised to 3500 from 3250 

Jefferies on Avenue Supermarts (CMP: 4306) 

Jefferies has maintained the rating of hold and raised the target to Rs 4100 from 3900. 

Macquarie on Avenue Supermarts (CMP: 4306) 

Similarly, Macquarie has maintained the rating of outperform with the target of Rs 4900.  

Earlier on Saturday, DMart retail chain owner Avenue Supermarts reported a 64.13 per cent rise in its consolidated net profit at Rs 685.71 crore in the July-September quarter of FY23 as the average basket values continue to be elevated. The company had posted a net profit of Rs 417.76 crore in the corresponding quarter a year ago, said Avenue Supermarts in a BSE filing.

Its revenue from operations was up 36.58 per cent at Rs 10,638.33 crore during the quarter under review as against Rs 7,788.94 crore in the corresponding quarter last fiscal.

Avenue Supermarts' total expenses stood at Rs 9,925.95 crore, up 36.93 per cent in Q2/FY23, as against Rs 7,248.74 crore of the corresponding quarter.

Avenue Supermarts CEO & Managing Director Neville Noronha said during the quarter FMCG and staples segment of the business has performed better than the general merchandise and apparel segments.

For the first half of the fiscal, Avenue Supermarts' revenue from operations was up 59.39 per cent at Rs 20,676.40 crore as against Rs 12,972.06 crore registered in the April-September period of FY22.

The net profit in the first half of the Damani family-promoted supermarket chain was up over two folds at Rs 1,328.60 crore as against Rs 513.12 crore.

As of September 30, 2022, D-Mart was operating 302 stores in markets such as Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

Over the period of one year, the share of Avenue Supermarts has given a negative return of around 12.85 per cent. The 52-week high and low of the share are Rs 5,900 and Rs 3,186 respectively. 

Avenue Supermarts hit all-time hight of Rs 5,900 on October 18, 2021 and all-time low of Rs 558 on March 21, 2017.

With PTI inputs