Avenue Supermarts reports Q4 results; what should investors do?
Avenue Supermarts share price: The company in the fourth quarter reported a 22.39 per cent rise in consolidated net profit at Rs 563 crore against Rs 460 crore in the corresponding quarter of the previous fiscal.
Avenue Supermarts share price: Shares of Avenue Supermarts Ltd, which owns and operates D-Mart stores surged over 2 per cent in the morning deals on Monday (May 6) after the company reported its Q4FY24 numbers on Saturday.
At around 9:40 a.m., shares of Avenue Supermarts traded 0.82 per cent or Rs 37.85 higher at Rs 4,648 apiece. The market capitalisation of the company at around the same time stood at Rs 3,02,389.15 crore.
Avenue Supermarts Q4 results
The company in the fourth quarter reported a 22.39 per cent rise in consolidated net profit at Rs 563 crore against Rs 460 crore in the corresponding quarter of the previous fiscal.
Its consolidated total revenue for the quarter stood at Rs 12,727 crore compared to Rs 10,594 crore a year ago.
Also read: Avenue Supermarts Q4 Results: Net profit rises 22.39% to Rs 563 crore
Management commentary
Avenue Supermart CEO & Managing Director Neville Noronha said DMart, the brick-and-mortar business, ended the year with growth across key financial parameters of revenue, EBITDA, and PAT.
The company opened 41 new stores during the year, and its total store count stands at 365.
"Q4 FY2024 saw a continued uptick in the contribution from general merchandise and apparel," Noronha said.
DMart Ready, the e-commerce business, commenced operations in one new city(Gurugram) during the year while continuing to deepen its presence in existing cities.
"We are now present across 23 cities in India," Noronha said.
What should investors do?
JP Morgan double-upgraded the stock to 'overweight' from 'underweight' and raised the target to Rs 5,400 from Rs 3,555 apiece. Further, Jefferies maintained a 'hold' and raised the target to RS 4,300 from Rs 4,200 apiece.
Goldman Sachs continued with a 'sell' and raised the target to Rs 3,900 from Rs 3,750 apiece. Additionally, Morgan Stanley iterated 'overweight' and gave a target of Rs 5,123 apiece.
Similarly, CLSA on Avenue Supermarts maintained a 'buy' and gave a target of Rs 5,535. Meanwhile, Macquarie continued with an 'outperform' and gave a target of Rs 5,150 apiece.
Avenue Supermarts share price: Past performance
In a year, Avenue Supermarts shares have gained over 25 per cent against Nifty50's rise of over 23 per cent.
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