India's DMart drops; analysts cut PT on weak Q1 sales growth

Avenue Supermarts

03/07/2026 05:28

** Shares of DMart parent Avenue Supermarts AVEU.NS fall 4.4% to 4,002.30 rupees
** Analysts trim estimates and PT following weaker-than-expected Q1 revenue growth of 15%
** CLSA cut its target price to 5,723 rupees from 6,628 rupees; lowered FY27-29 sales assumptions by 7%-9%
** Says sales missed expectations due to pre-buying earlier in the year, a higher private-label mix, delayed monsoon demand and lower initial sales density at new stores
** However, it maintained a high-conviction "outperform" rating
** Antique Stock Broking cut FY27/FY28 earnings estimates by 3%/2%; reduced PT to 4,437 rupees from 4,524 rupees and retained "hold" rating
** Brokerage says slower store additions, weak general merchandise and apparel performance, and rising quick-commerce competition could weigh on near-term growth and margins
** Avg rating of 31 analysts at "hold"; median PT is 4,510 rupees
** YTD, stock up 5.9%


 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))