Shares of Avenue Supermarts, the parent fim that operates DMart, rallied 10% to hit the upper circuit of Rs 3,972.20 after the company’s performance stood strong in Q3 of FY25. Its standalone revenue from operations in Q3 jumped 17.5% to Rs 15,565.23 crore, compared with Rs 13,247.33 crore in Q3 FY24. The number of stores operated came in at 387 as of December 31, 2024.
Motilal Oswal on DMart
The company’s ramp-up of in-store additions remains the key growth driver for DMart, said Motilal Oswal in a research note. “We are building in ~18 store additions in 4Q, which would bring the total store additions to 40 in FY25.” The brokerage has a ‘Buy’ rating on the stock with a target price of Rs 5,300, an upside of 47% from the current market price.
DMart in Q2
The company witnessed a 14.2% year-on-year rise in its standalone revenue at Rs 14,050 crore for the second quarter of FY24 against Rs 12,308 crore in the same period last year. The net profit for the July to September quarter of FY25 stood at Rs 710 crore, a growth of 7.9% on year from Rs 659 crore in the corresponding quarter of last year. The net profit margin was 5% in Q2 FY25 against 5.3% in Q2 FY24.
DMart parent’s earnings before Interest, tax, depreciation and amortisation (EBITDA) in Q2 FY25 was reported at Rs 1,105 crore, as compared to Rs 1,002 crore in the same quarter of the previous fiscal.
DMart Vs Nifty 50
The stock of DMart has given a return of 18% in the last five trading sessions. The stock has risen 8% in the last one month. However, it has fallen more than 13% in the past six months. The stock has given a return of 17% from year to date.
To compare, the benchmark index, Nifty 50 has risen 1.5% in the last five trading sessions. The index has fallen 1.3% in the last one month and 0.66% in the past six months. The index has given a return of 2% from year to date.