Street View: India's DMart's GM&A segment recovery a key positive

Avenue Supermarts

17/07/2023 06:02

** India's Avenue Supermarts  AVEU.NS , operator of DMart stores, posted a
near-2.5% jump in Q1 net profit at 6.59 billion rupees ($12.2 million) on
Saturday
    
    
    GM&A RECOVERING AND TRENDING TOWARDS PRE-COVID LEVELS
    
    ** Jefferies ('hold,' PT: 3,700 rupees) says the muted General Merchandise &
Apparel (GM&A) mix drove YoY margin decline; however, the sequential
improvement, as the segment is now close to pre-COVID levels, is a key positive
    ** Antique ('buy', PT: 4,218 rupees) says recovery in sales of superior
margin GM&A, recovery in mature stores/same store sales growth to pre-pandemic
levels, and inflationary trends will be key catalyst for DMart's performance
    ** Systematix Research ('buy', PT: 4,266 rupees) says GM&A sales are
recovering with contribution trending towards pre-pandemic levels, and the
positive trend is also a factor in the QoQ improvement in gross and EBITDA
margins

($1 = 82.1800 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))