Avenue Supermarts Ltd shares are trading in the red today with a downfall of around 4.3 percent. The scrip opened its trading session today at Rs 3,644.85 and currently trades at Rs 3,498.
Such a drop in the share price is witnessed after a reduction in the standalone revenue from operations was observed in a recent business report shared by the company via a filing over the exchange. The numbers have reduced from Rs 11,305 crores in Q3 to 10,337.12 crores in Q4.
Avenue Supermarts Ltd is an India-based company engaged in the business of organized retail and operates supermarkets under the brand name of D-Mart. All the business operations of the company are principally carried out in India. It provides products under the categories of Foods, Non-Foods (FMCG), and General Merchandise and Apparel.
Having a quick walkthrough of the revenue and net profit numbers reported, the company’s revenues moved from Rs 10,638 crores in Q2 to Rs 11,569 crores in Q3. Whereas, the net profits decreased from Rs 686 crores in Q2 to Rs 590 crores in Q3.
The profitability ratios have shown decent improvement in recent financial years. The ROE figure shifted from 9.48 percent during FY20-21 to 11.57 percent in FY21-22. Moreover, ROCE moved from 13.09 percent in FY20-21 to 16.38 percent in FY21-22.
According to the data available for the quarter ending December 2022, promoters hold a constant 74.99 percent stake in the company. FIIs, slightly as far as the percentage is concerned, took an exit from the company supported by a movement in the holdings of 8.72 percent in Q2 and 8.63 percent in Q3.
Prabhudas Lilladhar came up with a ‘Buy’ recommendation on Avenue Supermarts with a target price of Rs 4,699 indicating an upside of around 34 percent as compared to the current price levels.
Written by Amit Madnani
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