India's D-mart hits 10-month high; CLSA sees growth, valuation comfort

Avenue Supermarts

19/08/2025 08:10

** Shares of D-mart owner Avenue Supermarts AVEU.NS rise as much as 2.1% to 4,653 rupees, their highest level since October 10, 2024

** CLSA reiterates "high conviction outperform" on the retailer, with PT of 6,408 rupees, implying a 41% upside

** CLSA's PT is the highest among 28 analysts tracking AVEU at an average recommendation of "hold" - data compiled by LSEG

** The brokerage highlights AVEU's industry-leading operating profit margins, driven by stringent cost control

** With 428 stores, AVEU's footprint is seen as comparable to Walmart's in the early 1980s, signaling ample room for expansion, according to CLSA

** CLSA says the company matches global giants such as Costco, Tesco, Walmex and Walmart in how efficiently it generates sales from its stores

** Adds, current valuation of AVEU underplays the faster pace of store additions

** AVEU shares up 28% in 2025 versus a 0.5% drop in the Nifty Next 50 .NN50

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))