India's DMart operator gains after CLSA reiterates top rating on stock

Avenue Supermarts

16/12/2025 04:57

** India's Dmart-parent Avenue Supermarts AVEU.NS rises 1.9% to 3,896.90 rupees after CLSA reiterates "high conviction outperform" rating on stock

** AVEU among CLSA's top picks in large-cap consumer space

** Brokerage says DMart's expansion-led negative free cash flow likely to reverse as store additions normalize, mirroring global peers Walmart WMT.O, Costco COST.O, BIM BIMAS.IS

** CLSA keeps AVEU target price unchanged at 6,300 rupees; sees strong long-term free cash flow potential

** CLSA expects FY25-28 revenue CAGR of ~15-20%, driven by 155-225 new store openings

** CLSA forecasts FY28 EPS at 30.2 rupees vs 16.9 rupees in FY24; PE multiple to ease from 227x to 127x

** AVEU rated "Hold" on average;  median PT is 4175 rupees - data compiled by LSEG

** Stock up 9.4% this year

 (Reporting by Brijesh Patel in Bengaluru)

 ((Brijesh.Patel1@thomsonreuters.com; Ph no. +91 9590227221;))