Analysts are Cautious After D-Mart Results

  • Investing.com
  • Stock Market News
Analysts are Cautious After D-Mart Results
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Avenue Supermarts Ltd (NS: AVEU ), operator of retail chain D-Mart, reported its numbers for the fourth quarter of FY21, ended March 31, 2021. Net profit was up 52.6% at Rs 413.88 crore compared to Q4FY20, and revenue was up 18.5% year-on-year to Rs 7,411.7 crore.

Despite the increase in numbers, brokerages are not bullish on the company. The main reason for the numbers being up is the low base from last year when lockdowns were imposed. The second reason for the muted view on Avenue Supermarts is the second wave of COVID.

The company said, “Significant disruptions have been seen from March 2021 onwards for the store operations. The restrictions and local level enforcements have become much stricter. In general, more than 80 percent of stores are operating for a significantly lower number of hours (not exceeding four hours per day) or are even shut for operations for one to weeks or shut on weekends. These shutdowns are having an adverse and severe impact on our revenues.”

Avenue Supermarts closed May 7 at Rs 2,895.5 and is currently trading down at Rs 2,872.5 at the time of this report.

Brokerage firm Dolat Capital has given a ‘reduce’ rating on the stock with a price target of Rs 3,033. Motilal Oswal Financial Services Ltd (NS: MOFS ) is neutral on the stock with a target of Rs 2,850 while JP Morgan is underweight on Avenue Supermarts with a target of Rs 2,700.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search
  • Harsh Bansal @Harsh Bansal
    It's a buy and hold company for 3years, can reach 4000 in upcoming times.
    Like 1
  • Kunal Kashyap @Kunal Kashyap
    I don’t understand the what weed the analysts are taking, go and see on the ground that will make some sense in giving right values
    Like 3
  • Harsh Bansal @Harsh Bansal
    It's a buy and hold company for 3years,,,,,,, can reach 4000,,,,,,,in upcoming times,,
    Like 0

Related Articles