Avenue Supermarts Q2 Results Review - Weak Performance, Weaker Commentary, Delayed Recovery: Dolat Capital

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..Dolat Capital Report.Avenue Supermarts Ltd.’s Q2 FY25 gross profit/Ebitda/adjusted profit after tax came below estimates due to higher opex. Standalone Revenue/gross profit/Ebitda/APAT grew by 14.2/ 15.9/10.3/7.9% YoY. While business model remains strong, managing the trinity of healthy store additions (12-13% CAGR), same-store sales growth (6-9%) and margins (driven by mix) on a higher base is becoming a challenge. The company is also facing intense competition (from Qcom), which, coupled with increasing costs can accentuate earnings growth pain. However, an accelerated store expansion can partly soften the blow. We reduce our FY25-27E EPS estimates by 8/8/9%. Reiterate ‘Reduce’ rating with revised target price of Rs 4,120 from Rs 3,940 at 65 times H1 FY27E standalone EPS and Rs 180 for Ready at five times FY27E enterprise value/sales (earlier target price of Rs 4,530 at H1 FY27). Valuations at 98/82/70 times FY25-27E EPS leave limited room to err..Click on the attachment to read the full report:.Avenue Supermarts Q2 Results Review- Lower Growth, Higher Cost Of Retailing Drive Earnings Miss: Motilal Oswal.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 - Weak Performance, Weaker Commentary, Delayed Recovery: Dolat Capital

The company is also facing intense competition (from Qcom), which, coupled with increasing costs can accentuate earnings growth pain, says the brokerage.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Avenue Supermarts Q2 Results Review - Weak Performance, Weaker Commentary, Delayed Recovery: Dolat Capital

The company is also facing intense competition (from Qcom), which, coupled with increasing costs can accentuate earnings growth pain, says the brokerage.

Choose a plan

Follow Us

DOWNLOAD THE APP