D-Mart Shares Rise on Strong Topline Zoom; Fails to Impress Investors in 2022

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D-Mart Shares Rise on Strong Topline Zoom; Fails to Impress Investors in 2022
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the retail company and the owner of D-Mart, Avenue Supermarts (NS: AVEU ) surged 3% to Rs 3,488.7 apiece at the time of writing, after climbing up to 5% in early trade on Monday.

The stock uptick was a result of the company’s exceptionally high revenue figure cited in the April-June 2022 period.

According to a regulatory filing, Avenue Supermarts’ standalone revenue from operations rallied a whopping 95% to Rs 9,806.89 crore on a YoY basis in the June quarter of FY23. In comparison, the figure stood at Rs 5,031.75 crore in the same period last year.

The company’s revenue performance in the most recent quarter is better than the peak and pre-pandemic period, majorly due to improving demand as Covid-19 restrictions eased, compared to the low base of the pandemic-impacted corresponding quarter (last year).

As per global brokerage Morgan Stanley (NYSE: MS ), the rise in prices due to mounting inflation will fare well for grocery retailers like D-Mart.

The company, in its update, also informed that the total number of stores, as of June 30 stood at 294.

The retail major’s scrip has failed to deliver positive results to its investors this year, as its valuation has tumbled over 25% so far in 2022, underperforming the headline index Sensex , which has declined over 10% in the period.

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