Stock Market Today: Ace investor Radhakishan Damani-backed Avenue Supermarts, which operates the retail chain DMart, reported its Q3 results over the weekend .
Q3 Result performance
During the In the December quarter, Avenue Supartmarts (DMart) declared a net profit of ₹723 crore, up from ₹690.61 crore during the same period last yearm, translating into a rise of 4.7% year on year.
In the third quarter of the current fiscal year, the hypermarket chain operator’s operating revenue increased 17.68% to ₹15,972.55 crore, up from ₹13,572.47 crore in the same period last year.
Analyst views:
Jefferies India Pvt Ltd post Q3 results said that DMart reported an acceleration in SSSG but EBITDA margins came below expectations due to weaker mix (higher foods). Category trends signal higher growth in foods partially due to cost inflation, which also showed up in slightly lower Gross Margins, with EBITDA margin down c50bps Year on year in the back of sharp rise in staff and operating expenses – EBITDA grew 10% YoY and net earnings grew 6% , but both, missed Jeffereis and Consensus estimates.
Jefferies analysts have cut FY25-27 estimates EPS by 3-6% and retain HOLD with revised price target at ₹4,225.
Motilal Oswal Financial Services too has reduced its FY25-27 estimated Ebitda by 4% each due to higher CoR and rising competitive intensity from Quick Commerce (QC), while they cut our FY25-27 estimates EPS by ~4-7%. MOFSL has Reiterated Buy with a revised target of ₹4,450 (earlier ₹4,750)
Management Changes
DMart announced Appointment of Anshul Asawa as a Chief Executive Officer Designate and Senior Managerial Personnel of the Company with effect from 15th March, 2025.
Ignatius Navil Noronha will complete his current term of 5 years as the Managing Director of the Company on 31st January, 2026. Asawa will succeed Ignatius Navil Noronha taking on full responsibilities as Managing Director & CEO with effect from 1stFebruary, 2026, subject to approval of the shareholders of the Company and such other approvals as may be required, said the company in its release on the excanges
