The shares of DMart’s parent company, Avenue Supermarts, fell 3% during Wednesday’s trading session and hit an intraday low of Rs 3,699.65 per share on the BSE. Global stockbroker Goldman Sachs reduced its target price on the company, according to Bloomberg, from Rs 4,050 per share to Rs 3,425 per share while keeping a “Sell” rating, which is what caused the selling pressure in the market.
Goldman Sachs Slashes Target Price
Goldman Sachs has maintained a “SELL” recommendation on D-Mart (Avenue Supermarts) and lowered its target price from Rs 4,000 to Rs 3,425. One of the brokerage’s main concerns is the increasing strain on D-Mart’s competitive moat. Additionally, Goldman Sachs has lowered its earnings projections by 4.2%, 6.2%, and 6.1% for FY25, FY26, and FY27, respectively. From about 15% over MRP in July 2024 to 25% in December 2024, DMart’s supermarket basket discount for baskets of produce has grown.
Additionally, Goldman Sachs notes that DMart does not have a competitive advantage in the urban fresh food sector and that the company is still unable to reach a significant share of the Indian grocery industry.
DMart Share Price
On the BSE, the price of DMart’s shares was down 1.79 percent at Rs 3,748 per share. The BSE Sensex, by contrast, was up 0.22 percent at 81,689.01. The company’s market capitalization was Rs 2,43,894.75 crore. The stock’s 52-week high was Rs 5,484 per share, and its 52-week low was Rs 3,567.35 per share.
DMart Q2 FY25 Results
Total revenue increased from ₹12,308 crore in Q2 FY24 to ₹14,050 crore in Q2 FY25. EBITDA (earnings before interest, tax, depreciation, and amortization) was ₹1,105 crore for the period, compared to ₹1,002 crore for the same quarter of the previous year. The company’s EBITDA margin decreased to 7.9% from 8.1% in the second quarter of FY24. Compared to ₹659 crore in Q2 of FY24, the net profit for the quarter was ₹710 crore. As a result, the profit after tax (PAT) margin decreased from 5.3% to 5.0%.
Total revenue increased from ₹23,892 crore to ₹27,762 crore during H1 FY25. First-half EBITDA was ₹2,326 crore, down from ₹2,038 crore in H1 FY24. The EBITDA margin was 8.4%, a small decrease from 8.5%. PAT margin decreased from 5.6% to 5.5% while net profit increased from ₹1,354 crore to ₹1,523.
