Avenue Supermarts Ltd. share price target

With a 17% upside from the CMP, we maintain a BUY rating on the stock.

Avenue Supermarts (DMart) continues to operate as a business focused on stability rather than growth acceleration. Margins delivered a positive surprise, with EBITDA margin at 8.4%, driven by execution discipline and cost control despite an unfavourable mix.

Avenue Supermarts (DMART) delivered a strong beat on profitability in 3QFY26, driven primarily by gross margin (GM) expansion.

DMart Ready added 10 new fulfillment centers in key metro markets, while rationalizing presence by exiting five smaller cities. The platform now operates across 19 cities, reinforcing focus on high-potential urban clusters ....

With a 15% upside from the CMP, we maintain a BUY rating on the stock

Dmart’s Q2FY26 results were in line and soft. Standalone Rev/GP/EBITDA/APAT came in at 15.4/15.9/11.3/5.1% YoY. We believe Rev was impacted by monsoons, store cannibalization, shift to Qcom and price deflation.

We attended Avenue Supermarts (DMart)’s FY25 analyst meet, wherein the management indicated acceleration in store additions as the utmost priority.

D-Mart's annual analyst call reinforced our cautious stance due to 1) Rising land acquisition costs, increasing wage inflation, and a deteriorating product mix which can further pressurize margins in the near to medium term. 2) Structural challenges persist in the apparel segment. 3) stiff competition from quick commerce players (more in top 20 cities). And 4) little visibility on D-Mart...

Author: Vincent K A - Sr. Research Analyst improving the white label product mix, will reduce margin pressure in the future. We a target price of Rs.4,657 by valuing it on a DCF basis, implies 74x on FY27 EPS....

With an 18% upside from the CMP, we maintain a BUY rating on the stock.

GM&A share at 24.7% for 1QFY26 up by 210bps vs 22.26% in FY25 We cut our FY26/FY27 EPS estimates by 1.0%/1.9%, respectively, as we expect margin pressures to persist due to 1) Continued high competitive intensity...

With a 17% upside from the CMP, we maintain a BUY rating on the stock.

GM&A share at 22.6% for FY25 down by 40bps vs 23% in 9MFY25 We cut FY26/FY27 EPS estimates by 2.4/1.6% (earlier est lower by 11/14% than consensus) as we expect margin pressure to continue due to 1) sustained high competitive intensity led by consumer shift to Ecom/QC 2) accelerated store openings in a scenario of subdued demand, softer GM, higher spending on consumer service and rising store level/gig worker wages in metros. D'Mart 4Q results missed estimates as fierce competitive intensity impacted Gross...

Avenue Supermarts (DMART) posted weak results in 4QFY25 as standalone EBITDA inched up 4% YoY (9% miss) due to weaker gross margin (GM; -25bp YoY) and higher cost of retailing (CoR; opex up 12% YoY on a per sqft basis).

Rs60-80bn fund infusion in FY26 given limited cash in balance sheet and long gestation of setting up stores (Land, building etc over 2.5 years). We cut EPS by 0.7/6.1/7.1% for FY25/26/27. We have DCF based target price of Rs3942 (Rs3958 earlier). However, the stock at 76xFY27EPS with 14% EPS CAGR over FY25-27, leaves little room for further re-rating. Retain Hold openings in 4Q25 to 28 stores taking the total addition to 50 stores, highest store...

Maintain Contra Sell

We maintain our HOLD rating on the stock with the revised TP to Rs 4,000/share. The TP implies an 8% upside from the CMP.