DMart Q3 Results Review - Margins Shielded Through Cost Control: Motilal Oswal

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..Motilal Oswal Report.Avenue Supermarts Ltd.’s consolidated/standalone revenue grew 17% YoY, led by 11% store adds. The stabilisation in general merchandise and apparel contribution, combined with controlled costs, cushioned gross margin, leading to a flat YoY performance – a sign of recovery. DMart's controlled opex resulted in Ebitda/profit after tax growing by 16%/17% YoY. Revenue/Ebitda/profit after tax grew by 18%/10%/3% respectively for nine months FY24. The gap between revenue/square feet (up 4% YoY) and revenue/store (up 5% YoY) continue to shrink, indicating an improvement in the share of larger-format stores, marking a positive trend. Further, healthy cost efficiencies and a recovery in discretionary demand are likely to drive growth. We have marginally cut PAT estimates by 3%/1% for FY25E/FY26E. Subsequently, we arrive at our target price of Rs 4,700 and reiterate our 'Buy' rating on the stock..Click on the attachment to read the full report:.DMart Q3 Results Review - Inline; GM&A Portfolio Stabilised: HDFC 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.

DMart Q3 Results Review - Margins Shielded Through Cost Control: Motilal Oswal

Revival in general merchandise and apparel category remains a key monitorable

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DMart Q3 Results Review - Margins Shielded Through Cost Control: Motilal Oswal

Revival in general merchandise and apparel category remains a key monitorable

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