Street View: Elevated costs to weigh on India's Avenue Supermarts; stock falls

Avenue Supermarts

13/10/2025 06:15

** Avenue Supermarts AVEU.NS falls 1.2% to 4,271 rupees

** DMart supermarket chain operator's Q2 consol PAT rises 3.5% y/y; rev up 15.45% y/y

EARNINGS "UNDERWHELMING", MARGINS UNDER PRESSURE

** BofA ("underperform"; PT: 3.925 rupees) says softer like-for-like sales, elevated investments continue to weigh on earnings; calls Q2 earnings "underwhelming"

** HSBC (retains "reduce"; PT: 3,700 rupees) says key concern remains on moderation of like-for-like sales; says operational expenses elevated

** Jefferies (retains "hold"; raises PT to 4,400 rupees from 4,350 rupees) expects stock to stay range-bound until margins improve

** CLSA ("high conviction outperform"; cuts PT to 6,300 rupees from 6,408 rupees) remains "positive" on co, but sees higher near-term costs due to store additions

 (Reporting by Komal Salecha)

 ((Komal@thomsonreuters.com;))