DMart Share Price Falls Over 4% After Q2 Results Miss Estimates

In this article, we will talk about the DMart share price. Avenue Supermarts Limited, d/b/a DMart is an Indian retail company that operates a chain of hypermarkets in India. In 2002 it was founded by Radhakishan Damani when its first store was opened in Powai, Mumbai. As of June 2023, it has more than 330 stores across 14 states in India. Reportedly, DMart shares fell more than 4% in early trade on Monday after the company informed its earnings for the quarter finished September 2023. Now many people are super keen to know the complete information about the news. Here we have more information about the news and we will share it with you in this article.

DMart

According to the report, Avenue Supermarts or DMart descended as much as 4.09% to ₹3,771.70 per on the BSE. Avenue Supermarts, the operator of the DMart retail chain on 14 October 2023, Friday reported a close net profit of ₹623.35 crore for the second quarter of FY24, reporting a decrease of 9.09% from ₹685.71 crore in the year-ago period. The company’s supposed income from functions in Q2FY24 expanded 18.66% to ₹12,624.37 crore from ₹10.638.33 crore, YoY. You are on the right page for more information about the news.

Profits before Interest, Tax, Depreciation, and Amortization ( (EBITDA) during the quarter stood at ₹1,005 crore, which corresponded to ₹892 crore in the corresponding quarter of the previous year. EBITDA margin shortened to 8.0% from 8.4%, YoY. Neville Noronha is one of the respected CEOs and managing directors, of Avenue Supermarts who stated ” Our gross margins continue to be down compared to the same time in 2022 due to lesser contribution from the more elevated margin General Merchandise and Apparel business. Scroll down to the next page for more information about the news.

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Nuvama Institutional Equities

Avenue Supermarts, after a positive spurt in productivity, again reported a miss with EBITDA up just 12 percent YoY as General Merchandise & Apparel (GM&A) share stayed below pre-Covid and was even down YoY, a surprise SSSG for H1Fy24 at 8.6% was tough, in-line with an annual estimate of 8.5%. The brokerage maintained a ‘Hold’ rating on the products with a target cost of ₹4,021 for each share.

Motilal Oswal Financial Services

DMart clocked 19% earnings CAGR more than FY20-23 led by 20% footprint complements. Subdued SSSG was particularly because of the additions of bigger stores over the last couple of years (20% grade in middle store size), and weak discretionary demand (stake of discretionary items reduced to 23% in FY23 from 27% in FY20). Motilal Oswal had cut FY24 PAT assessments by 4.6% on a more lagging rally in H1FY24E. Here we have shared all the information that we had. Stay tuned for more updates.

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Gurleen Kaur

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