The shares of Avenue Supermarts of Dmart fell over 2 per cent in Monday's trade after it reported a weak June quarter earning performance. Post this several top foreign brokerages came out with their views on the stock. While Morgan Stanley maintained 'equal weight' on the Radhakishan Damani owned firm, Nuvama maintained a hold rating as it raised the price target. On the other hand Kotak Institutional Equities recommended a sell.
The shares of Avenue Supermarts on Monday morning at 11:52 am IST were trading at Rs 3,750, down by 2.31 per cent.
DMart earnings
The company reported a 2.3 per cent year-on-year rise in net profit for the first quarter of the financial year 2024 to Rs 695.36 crore. This was despite the 18 per cent growth YoY in revenue for the quarter at Rs 11,584.40 crore.
The Earnings before Interest, Tax , Depreciation and Amortization in the quarter that ended in June was at Rs 1,035 crore as compared to Rs 1,008 crore in the corresponding quarter of last year. EBITDA margin was at Rs 8.7 per cent in the first quarter against 10 per cent in the first quarter of the last year.
Neville Noronha, CEO and Managing Director, Avenue Supaermarts said, "Overall gross margins are lower compared to the same period in the previous year, primarily due to lower sales contributors of apparel and general merchandise."
The company has opened three new stores in the last quarter and is now operating 327 stores as of June 30,
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