04 Apr , 2024 By : Debdeep Gupta
The revenue growth is higher than the 18 percent growth in the nine months of FY24, largely led by same-store sales growth of 11 percent, Morgan Stanley has said
Shares of Avenue Supermarts Limited, which operates the DMart chain of stores, surged 6 percent to Rs 4,715 to hit a new 52-week high on April 4 morning after the company announced a 20 percent rise in standalone revenue for the March quarter.
At 9.40 am, the stock was trading at Rs 4,667, up 4.6 percent from the previous close. The share has surged over 20 percent in the past month.
The company said its revenue rose to Rs 12,393 crore in the final quarter of FY24. Following the announcement, Morgan Stanley maintained its "overweight" call and assigned a price target of Rs 4,695, which has already been breached.
The revenue growth is higher than the 18 percent witnessed in the nine months of FY24, largely led by same-store sales growth (SSSG) of 11 percent, the brokerage said. The SSSG recorded by the company is the highest in the last five quarters.
On April 2, CLSA upgraded its target price for the stock to Rs 5,514 from Rs 5,307, reaffirming its "buy" call, as the supermarket chain's quarterly store additions reached an all-time high.
The revised target price, the second such move in a week, represents a 23 percent increase over the stock's closing price of Rs 4,460 on April 3. The brokerage initiated coverage of the company on March 21 with a "buy" recommendation, highlighting promising growth prospects in untapped markets.
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