Mon Oct 14 08:45:03 UTC 2024: ## DMart Share Price Plunges Over 9% After Disappointing Q2 Results
**Mumbai, India:** Shares of Avenue Supermarts, the operator of the DMart retail chain, plummeted over 9% on Monday after the company’s second-quarter results fell short of analysts’ expectations.
The company reported a 5.77% year-on-year growth in net profit to ₹659.58 crore in the September quarter, while revenue rose by 14.4% to ₹14,444.5 crore. However, these figures were significantly lower than analysts’ forecasts, leading to concerns about the company’s future growth prospects.
The slower-than-expected growth was attributed to several factors, including increased competition from online grocery players, particularly in metro cities, and higher operating costs due to improved service levels. The company also experienced a slowdown in the growth of its online grocery platform, DMart Ready.
Following the disappointing results, several brokerages downgraded their ratings and target prices for Avenue Supermarts shares. JPMorgan cut its FY25 and FY26 EBITDA estimates by 8% and 10%, respectively, while Bernstein noted that the company’s revenue growth was the slowest in four years.
“DMart posted a weak Q2FY25 owing to lower productivity of stores,” said Antique Stock Broking. “The key monitorable for DMart would be its ability to fight competition from online groceries and recovery in general merchandise & apparel.”
The decline in share price reflects investor concerns about the company’s ability to maintain its market share in the face of growing competition and rising costs. Analysts will be closely watching DMart’s future performance to see if the company can overcome these challenges and return to its previous growth trajectory.
First Piper 