Avenue Supermarts - Continue To Focus On Providing Value To Consumer: Centrum

Centrum Broking Report

We reckon Avenue Supermarts Ltd.'s growth story revolves around-

1. healthy same-store sales growth,

2. store expansion, and

3. offering great value through Everyday Low Prices driving store footfall.

We note, its cluster based expansion strategy focuses on store size optimization and improvement sale/sq ft. Moreover the disruption created by Q-Com players restricted to metros not impacting DMart’s footfall as the consumer prefer value over convenience.

Further we highlight DMart’s cost led approach remains key driver for value seeking consumers, yet Q-Com players’ focus on customers who seek time/convenience and not necessarily price sensitive. We retain Add rating with target price Rs 5,428 (implying 75 times FY26E EPS).

Risk: growth might impacted by availability and cost of real estate.

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