Shares of Avenue Supermarts on Monday jumped nearly 11 per cent after the company reported a two-fold increase in its consolidated net profit for the second quarter ended September 2021.
The stock zoomed 10.69 per cent to its 52-week high of Rs 5,899.90 on BSE.
On NSE, it rallied 10.82 per cent to its 52-week high of Rs 5,900.
Avenue Supermarts, which owns and operates retail chain D-Mart, on Saturday reported a two-fold increase in its consolidated net profit to Rs 417.76 crore for the second quarter ended September 2021.
The company had posted a net profit of Rs 198.53 crore in the July-October quarter a year ago, Avenue Supermarts said in a BSE filing.
Its revenue from operations was up 46.79 per cent to Rs 7,788.94 crore during the quarter under review as against Rs 5,306.20 crore in the corresponding quarter of the last fiscal.
Total expenses were at Rs 7,248.74 crore, up 43.63 per cent in the second quarter of 2021-22 as against Rs 5,046.69 crore of the year-ago quarter.
"Total revenue for H1FY22 stood at Rs 12,972 crore, as compared to Rs 9,189 crore in the same period last year," the company said.
Check what brokerage firms are saying, according to Moneycontrol.
Prabhudas Lilladher
We are cutting D’Mart to “accumulate” from “buy” despite 9.2-11.7 per cent upgrade in FY22-24 estimates and increase in DCF-based target price to Rs 5,359 (Rs 4,601 earlier), given a 26 per cent spurt in the stock price in last six trading sessions.
We expect strong momentum to continue in the third quarter led by gains from higher footfalls given the reduction in Covid restrictions, rising consumer confidence due to vaccinations, higher value sales due to inflation in FMCG and general merchandise, upcoming festival season and more locations and product offerings at D’Mart Ready.
Morgan Stanley
Morgan Stanley has downgraded the stock to “underweight” with a target at Rs 4,338 as Q2 earnings missed estimates but were ahead of consensus.
Given strong trailing stock performance, tactically move to “underweight” and await a better price for re-entry.
Credit Suisse
Credit Suisse has kept the “underperform” call on the stock on its extremely stretched valuation and raised the target price to Rs 3,500.
It was a largely in-line quarter and normalcy restored after the second wave. The company has continued to execute well on its proven “everyday low price” strategy.
Macquarie
The research house has kept the “outperform” call but raised the target to Rs 5,950.
The Q2 profit was above estimates, given healthy sales, better mix and cost controls. Macquarie raised FY22/23/24 EPS by 6 percent each to factor in Q2 beat and healthy recovery trends.
The recovery would benefit from increased customer adoption in an inflationary environment.
(With PTI Inputs)
