Analysts are Cautious After D-Mart Results
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.
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It's a buy and hold company for 3years, can reach 4000 in upcoming times.Like 1
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 valuesLike 3
It's a buy and hold company for 3years,,,,,,, can reach 4000,,,,,,,in upcoming times,,Like 0
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