The total number of stores at the end of September 2024 stood at 377. The Radhakishan Damani owned company aims to add 45 stores in FY25 with the medium term band at 45-60 stores per annum.
Post the update, brokerage firms have revised their views on the stock. Hereβs what they said:
Macquarie: Outperform| Target price: Rs 5,600
Sales growth has moderated from Q1 levels while store additions are slightly below estimates. Sequential moderation in gross margins are also expected due to a change in the product mix.
Also read: HDFC Bank Q2 Update: Deposits jump 15% YoY, advances under management surge 8%
Goldman Sachs: Sell| Target price: Rs 4,050
Goldman Sachs has maintained a Sell rating on Avenue Supermarts with a target price of Rs 4,050.Goldman believes that a sharp growth slowdown has been likely impacted by Q-Commerce. Moderation in growth due to SSSG slowdown was also seen. The global brokerage has cut FY26/27 EPS estimates by 2%. The companyβs store addition is at risk.
Morgan Stanley: Overweight| Target price: Rs 5,769
Morgan Stanley maintained an Overweight rating on the stock with a target price at Rs 5,769.
Morgan Stanley stated that the companyβs growth was below expectations and they now await management clarity on the slower growth rate. Standalone revenue at 5% was below the estimates while operational metrics have improved but at a slower rate.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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