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DMart Shares Hit New High, Crosses Rs 2 Lakh Crore Market Cap For The First Time

By Staff

On Wednesday, shares of Avenue Supermarts, that runs the chain of hypermarts under the brand DMart, rose to Rs 3,100 apiece. The nearly 20% surge in the stock price in the last three weeks has pushed the market valuation of the Radhakishan Damani-led company to over Rs 2 lakh crore for the first time ever.

DMart Shares Hit New High, Crosses Rs 2 Lakh Crore Market Cap For The First Time

Tracking gains in the broader markets, Avenue Supermarts has gained in 11 out of the last 13 sessions and has been beating its own record of the highest share price.

On Wednesday, shares of the company rose about 2.5% when compared to 0.37% gain in Sensex.

Axis Securities has a buy recommendation on the stock with a target price of Rs 3,100 a share. Motilal Oswal also had a buy recommendation with a target price of Rs 2,925. Clearly, the stock has breached both targets.

"DMart's strong execution capability with a stellar execution track record, places it on top of the list among all Food & Grocery (F&G) retail players. Tested business model with consistency in providing highest discounts on a profitable basis helps DMart to outperform competition. The company has ramped up its store expansion and its cluster based expansion aids in trimming costs and supporting margins," said Axis Securities in its recent report.

Avenue Supermart's board is scheduled to meet on 9 January 2021 to consider the financial results of the company for the December-ended quarter.

DMart's September quarter earnings showed improvement in business month-on-month with easing of the lockdown restrictions. It also said that sales at older stores have recovered to 87.5% as a few stores were operating for longer hours to ensure social distancing and to serve customers better.

The management also said that the progress of the pandemic and its impact on consumer spending during the festival period will determine the company's financial performance for the December quarter.

Read more about: avenue supermarts dmart
Story first published: Wednesday, January 6, 2021, 11:38 [IST]
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