Shares of D Mart-operator Avenue Supermarts climbed nearly 4 percent in early morning trade, a day after the company reported a jump of 35.8 percent in standalone revenue from operations at Rs 10,385 crore in the quarter ended September as compared to Rs 7,649.64 in the corresponding period a year ago.
Revenues in the September quarter of FY23 nearly doubled compared to the same period of FY20. At 10:11 am, shares of Avenue Supermarts were trading at Rs 4506, up by 1.82 percent from the previous close on the BSE.
As of September 30, 2022, Avenue Supermarts reported 302 D-Mart stores operating in the country, the company informed in a regulatory filing.
What do analysts have to say?
Brokerage firm Motilal Oswal pointed out in its note that although the revenue growth for Avenue Supermarts is strong, the calculated like-to-like growth in Q2 FY23 was up by just 2 percent from the corresponding period a year ago.
“As compared to pre-COVID levels of Q2FY20, this was lower by 10 percent,” added Motilal Oswal.
As an adjusted growth metric, like-for-like sales include revenues generated from stores or products with similar characteristics while excluding those with distinct differences that could skew results.
Meanwhile, Dipan Mehta, Founder Director of Elixir Equities, told CNBC-TV18 that with strong store expansion and high revenue growth, the potential for the DMart-operator Avenue Supermarts stock for the next 2-3 years is exceptional.
“Despite reasonably high valuations, we are positive in Avenue Supermarts. It can continue to grow at 25 percent for at least 3-4 years, which would mean a solid compounding story.”
First Published: Oct 4, 2022 11:32 AM IST
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