Avenue Supermarts Shares Decline Despite Profit Surge

Avenue Supermarts Ltd., the parent company of D-Mart, reports mixed quarterly results, with a 22.41% increase in net profit but a 6.18% decline in consolidated sales, leading to a 1.91% drop in share price, amidst varying analyst opinions and implications for India's organized retail sector and broader market." This description focuses on the primary topic of Avenue Supermarts' quarterly results, the main entity being the company, and the context of India's organized retail sector. It highlights the significant actions of the company's performance and its consequences on the share price, as well as the implications for the broader market. The description also provides objective and relevant details that will help an AI generate an accurate visual representation of the article's content, such as a graph showing the company's stock performance or an image of a D-Mart store.

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Aqsa Younas Rana
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Avenue Supermarts Shares Decline Despite Profit Surge

Avenue Supermarts Shares Decline Despite Profit Surge

Avenue Supermarts Ltd., the parent company of D-Mart, saw its shares trade 1.91% lower on Tuesday, reaching an intraday low of Rs 4,582.10. The decline comes despite the company reporting a 22.41% increase in net profit for the quarter ended March 31, 2024, even as consolidated sales dipped by 6.18% during the same period.

Why this matters: The mixed quarterly results of Avenue Supermarts, a major player in India's organized retail sector, have significant implications for the country's economy and the retail industry as a whole. The company's performance can influence investor sentiment and have a ripple effect on the broader market.

The mixed quarterly results have led to a varied response from analysts covering the stock. Out of the 23 analysts who have initiated coverage on Avenue Supermarts, 5 have given it a strong buy rating, 6 a buy rating, and 5 a sell rating. The company's market capitalization currently stands at Rs 305,457.36 crore.

Avenue Supermarts Limited is an India-based company engaged in the business of organized retail, operating approximately 324 supermarkets under the D-Mart brand across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, and Chhattisgarh. The company has a promoter holding of 74.65% and a public holding of 25.35%.

The shareholding pattern shows that mutual fund holding in Avenue Supermarts decreased to 0.89% as of March 31, 2024, compared to the previous quarter. However, FII holding increased to 8.26% during the same period. The company's TTM P/E ratio stands at 116.04, significantly higher than the sector P/E of 26.86.

Avenue Supermarts posted a net profit of Rs 560.58 crore in the last quarter, a substantial increase from the previous year. However, the decline in consolidated sales has raised concerns among some investors. The stock's 52-week high stands at Rs 4,892.20, while the 52-week low is Rs 3,353.05.

Key Takeaways

  • Avenue Supermarts' shares fell 1.91% despite 22.41% increase in net profit.
  • Consolidated sales dipped 6.18% in the quarter ended March 31, 2024.
  • Analysts' ratings are mixed, with 5 strong buys, 6 buys, and 5 sells.
  • Market capitalization stands at Rs 305,457.36 crore.
  • TTM P/E ratio is 116.04, higher than the sector P/E of 26.86.