Fri Jan 03 03:40:00 UTC 2025: ## DMart Parent Company Shares Surge After Strong Q3 Sales

**Mumbai, January 5, 2025** – Shares of Avenue Supermarts Ltd., the owner of the popular DMart supermarket chain, soared over 13% on Friday, reaching Rs 4,090.55, following the release of robust third-quarter financial results. The company announced a 17.5% year-on-year revenue increase, its highest growth in several quarters, reaching Rs 15,565.23 crore. This surpasses the previous year’s Q3 revenue of Rs 13,247.33 crore.

The strong sales growth, announced after market hours on Thursday, is attributed to a combination of increased store count (now at 387 stores) and a 12% average rise in same-store sales. While exceeding analyst expectations by 1%, the growth remains below DMart’s historical 20% topline growth rate.

Despite the positive Q3 performance, analyst opinions on Avenue Supermarts remain divided. While CLSA maintains an “Outperform” rating with a price target of Rs 5,360, suggesting a substantial upside, several other firms hold a bearish outlook. Morgan Stanley, Goldman Sachs, and Citi all issued “Sell” recommendations, citing concerns about weakening growth trends, increased discounting impacting margins, and intensified competition from quick-commerce platforms. These firms point to factors such as lower throughput, adverse product mix, and the impact of store expansion in smaller towns.

The current analyst consensus is mixed, with 11 of 29 analysts recommending a “Sell,” nine a “Buy,” and nine a “Hold.” Despite the recent surge, DMart shares have underperformed the market over the past year, falling by 12% compared to the Nifty index’s 12% gain. The stock’s price had also fallen below its 50-day and 200-day simple moving averages before Friday’s jump.

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