Dmart pricing edge not enough to drive footfall, says HSBC; cuts TP
BUZZ-Dmart pricing edge not enough to drive footfall, says HSBC; cuts TP ** Discounts offered at Dmart AVEU.NS stores not enough to encourage customers to visit physical stores, given added time at checkout and out-of-pocket travel costs - analysts at HSBC Global Investment Research
** Brokerage firm retains "Reduce" rating, cuts TP to 3,520 rupees from 3,530 rupees
** Recent store additions in areas with less than 1 million population will not lead to productivity increase, HSBC says
** "Dmart's core competitive edge appears to be its pricing proposition; without a more meaningful price gap vs alternatives, customer case for shopping in-store becomes less compelling"
** 9 out of 31 analysts rate the stock "buy" or higher, 14 analysts rate the stock "hold", and the rest rate the stock "sell" or lower
** Shares of AVEU up 0.2% at 3,717.70 rupees; YTD, down 2.01%
(Reporting by Saikeerthi in Bengaluru)
((Saikeerthi@thomsonreuters.com; (+91) 8296756080))
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Dmart pricing edge not enough to drive footfall, says HSBC; cuts TP