Fri Jan 03 06:43:29 UTC 2025: **DMart Shares Surge 12% on Strong Q3 Revenue Growth**

**Mumbai, [Date]** – Shares of Avenue Supermarts Ltd (DMart), the operator of the popular DMart supermarket chain, soared 12.33% on Friday, reaching a high of Rs 4,064.15 on the BSE. The surge followed the release of the company’s Q3 results, which showed a 17.18% year-on-year (YoY) increase in standalone revenue to Rs 13,247.33 crore, compared to Rs 11,304.58 crore in the same period last year.

The strong revenue growth, rebounding from a relatively weaker Q2, was attributed to a 13% YoY increase in store count (now totaling 387) and robust same-store sales growth. Analysts at Motilal Oswal Financial Services (MOFSL) attributed the growth to these factors and issued a ‘Buy’ rating with a target price of Rs 5,300, projecting an additional 18 store openings in FY25. CLSA also offered a positive outlook, rating the stock as ‘Outperform’, noting that the revenue exceeded their estimates.

Despite the positive Q3 results, concerns remain about intensifying competition in the grocery sector. IIFL Securities highlighted the entry of players like Flipkart Minutes and Amazon Tez into the quick commerce space, offering home delivery at prices marginally below DMart. Zepto’s “Super Saver” program also poses a competitive challenge. IIFL’s recent price survey even suggested that Flipkart and Zepto now offer grocery products at lower prices than DMart.

However, DMart’s strong Q3 performance clearly boosted investor confidence, outweighing concerns about the competitive landscape for now. The stock’s one-year performance remains modest at only a 5% increase, prior to today’s jump.

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