Avenue Supermarts Q2 Results Review - Initial Signs Of Ceding Share To Quick Commerce Visible: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Avenue Supermarts Ltd.’s Q2 performance indicates initial signs of D-Mart ceding market share to quick commerce players (especially in large metro cities). Revenue grew 14.2% to Rs 140.5 billion in Q2 (our estimate: Rs 142 billion). H1/Q2 FY25 same-store sales growth stood at 7.4/5.5% respectively and sales density was broadly stable YoY at Rs 35.6k/sq ft annualised). While general merchandise and apparel salience marginally improved to 23.45% of sales for H1 FY25 (versus 23.21% for H1 FY24) it remains meaningfully lower versus pre-pandemic times. Ebitdam contracted 27bps YoY to 7.9% (our estimate: 8.4%) despite stable gross margin (14.2%). We suspect the Ebitda miss could’ve been due to expansion-led front-loading of costs. Note: Cost of retailing remained elevated at 6.3% (versus 5.8% in Q2 FY25). We marginally cut our FY26/27 EPS estimates by 2% each to account for an increase in cost structure and maintain our Sell rating with a DCF-based target price of Rs 3,800/share, implying 59 times Sep-26 price/earning..Click on the attachment to read the full report:.Avenue Supermarts Q2 Results Review - Medium-Term Revenue Growth Rates Getting Reset Lower: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Avenue Supermarts Q2 Results Review - Initial Signs Of Ceding Share To Quick Commerce Visible: HDFC Securities

The brokerage maintains its 'Sell' rating with a DCF-based target price of Rs 3,800/share, implying 59 times Sep-26 price/earnings.

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Avenue Supermarts Q2 Results Review - Initial Signs Of Ceding Share To Quick Commerce Visible: HDFC Securities

The brokerage maintains its 'Sell' rating with a DCF-based target price of Rs 3,800/share, implying 59 times Sep-26 price/earnings.

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