The shares of this leading supermarket chain, Dmart, are in focus after the leading global brokerage firm Macquarie has flagged a downside risk of 31 percent. But what led the brokerage to slash its target sharply? Let’s dive into it.
With a market capitalization of Rs 2,74,691 crores, the shares of Avenue Supermarts Ltd are currently trading at Rs 4,221 per share, down by 23 percent from its 52-week high of Rs 5,484 per share.
Over the past five years, the stock has delivered a positive return of 82 percent. As of March 2025, the promoters and promoter groups hold a 74.65 percent stake in the organization..
Global brokerage firm Macquarie maintained an ‘Underperform’ rating with a target price of Rs 3,000 per share, signaling a potential downside of 30 percent from its current level.
It cited that the retail giant’s Q1 sales growth has increased slightly from the last quarter, despite a healthy pace of store additions. It also flagged rising competition in the quick commerce space.
In Q1 FY26, the company reported a standalone revenue of Rs 15,932.12 crores, up by 16 percent from its Q1 FY25 revenue of Rs 13,711.87 crores and up by 10 percent from its previous quarter revenue of Rs 14,462.39 crores. Additionally, the store count now stands at 424, up from the previous 415.
Financial Highlights
Avenue Supermarts Ltd reported a consolidated revenue of Rs 59,358 crores in FY25, up by 16.88 percent from its FY24 revenue of Rs 50,789 crores. It posted a net profit of Rs 2,707 crores in FY25, up by 6.74 percent, from its FY24 net profit of Rs 2,536 crores.
As of FY25, it derives 57.73% of its revenue from the food segment, 20.01% from the FMCG segment, and 22.26% from the general merchandise & apparel segment.
Despite steady revenue growth and new store openings, increasing competition and slower profit growth have raised concerns. Macquarie’s cautious view shows pressure on margins and market share. Investors may need to remain alert and continue reviewing the performance of the company.
Written by Satyajeet Mukherjee
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