India's DMart stores operator slips as Q3 core margin contracts

Avenue Supermarts

13/01/2025 04:22

** Shares of DMart stores-operator Avenue Supermarts
 AVEU.NS  fall 3.2% to 3,564.3 rupees
    ** Co posts ~5% rise in net profit to 7.24 bln rupees ($84
mln); but EBITDA margin contracts to 7.6% from 8.3%
    ** Systematix Institutional Equities analysts say margins
hurt by bigger discounts, rising share of low-margin foods, slow
growth in general merchandise and apparel, rising quick commerce
competition
    ** ICICI Securities expects uncertainty and pressure on
profitability to persist in the medium term
    ** At least 10 analysts cut price targets, per LSEG data
    ** Avg rating of 26 analysts is "hold" rating; median PT is
4,000 rupees -LSEG data
    ** Stock shed ~13% in 2024
 
 ($1 = 86.3000 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com ; ( +91 8078332441))