D-Mart owner Avenue Supermarts drops as Q3 sales misses view

Avenue Supermarts

04/01/2023 05:22

Jan 4 (Reuters) -    ** Shares of D-Mart owner Avenue
Supermarts  AVEU.NS  fall as much as 2.7% to 3,952.25 rupees,
their lowest since Dec 26
    ** Dec-quarter standalone rev from operations jumped ~25%
Y/Y to 113.05 bln rupees ($1.36 bln), co said in a quarterly
update late Tuesday
    ** Adds, total number of stores as of Dec-end stood at 306
    ** Motilal Oswal says rev missed brokerage's estimate by
6.2%, while store addition of 4 came in below expectation of 12 
    ** Goldman Sachs expects AVEU revenue growth to moderate
post FY24 to ~20%; sees moderation in same store sales growth
due to rising competition from large players like Reliance,
online grocery sellers like BigBasket and quick commerce
delivery players such as Swiggy
    ** GS sees competitive intensity rising in large cities;
does not expect AVEU's e-commerce business DMart Ready to be as
successful in gaining traction as its physical stores model;
keeps AVEU rating at 'sell,' with a price target of 3,600 rupees
    ** Eight out of 26 brokerages rate co at "buy" or above, 8
rate it  "hold," and 10 "sell" or below, showing a bearish
pattern, their median PT is 4,200 rupees 
($1 = 82.8375 Indian rupees)
 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com;))