Avenue Supermarts Q4 Update: Revenue Estimated To Rise 20%

Avenue Supermarts Ltd. has estimated 19.8% revenue growth in the fourth quarter of fiscal 2024.

Standalone revenue for the operator of the DMart retail chain during the January–March period is forecast to increase to Rs 12,393.5 crore over the year earlier, according to its quarterly business update released on the bourses on Wednesday.

Sequentially, it is expected to decline 6.4% from Rs 13,247.3 crore. The third-quarter performance though was aided by the festive season.

DMart added 24 stores in Q4 FY24, taking its total store count to 365.

Brokerages are upbeat on DMart. CLSA upgraded the company's stock twice in a week in March, reaffirming its 'buy' call, while ICICI Securities upgraded the stock to ‘Add’, with the expectation of DMart outperforming Nestle India Ltd. in the medium term. The bullish stance is based on several factors, like the attractive valuation of DMart, its limited downside and business risk, increase in the pace of store additions and consistent revenue growth.

Following the upgrades, the shares of Avenue Supermarts have recovered.

DMart shares, which hit a 52-week low of Rs 3,352 apiece on May 18 last year, ended at Rs 4,460.9 on the NSE in the previous session.

Over the last 12 months, shares of the Radhakishan Damani-founded company have grown 22.17% versus the benchmark Nifty50's 27.78% gain. However, the stock has fallen from its record high of Rs 5,900, which it reached on Oct. 18, 2021.