Avenue Supermarts shares surge as experts give 'buy' tag with 15 percent upside in short-term

11 Jul , 2022 By : Kanchan Joshi

DMart owner Avenue Supermarts shares surged to the tune of a1.50 per cent on Monday trade session as the company reported strong Q1FY23 results on Saturday. Avenue Supermarts share price today opened upside and went on to rise further and hit its intraday high of Rs4,087.85 apiece levels on NSE, logging near 1.50 per cent rise in Monday morning deals.

According to stock market experts, Avenue Supermarts in in 'uptrend' and strong quarterly results are expected to translate in fresh buying. So, every dip in the stock from current levels should be seen as buying opportunity as the stock has strong support base at Rs3650 apiece levels. They said that the stock has minor hurdle place at Rs4200 and once it breaks this hurdle it may go up to Rs4500 in next two months.

Speaking on the fundamentals supporting Avenue Supermarts share price rise, Ravi Singhal, CEO at GCL Securities said, "DMart owner Avenue Supermarts has reported strong first quarter numbers as the stock has managed to register near 5 times year-on-year (YoY) rise in net profit and its revenue from operations also got doubled. Apart from this lowering commodity prices are also a reason for rise in short to medium term sentiment in regard to this Indian retail corporation stock."

On Avenue Supermarts chart pattern, Sumeet Bagadia, Executive Director at Choice Broking said, "Avenue Supermarts share price is in uptrend. It has strong support at Rs3650 apiece levels and any dip in the stock should be seen as buying opportunity by positional investors. This stock has minor resistance at Rs4200 but once it manages to breach this hurdle, it may soon go up to Rs4500 apiece levels in next two months time horizon." He said that the chart pattern of the stock is indicating good buying zone in between Rs3800 to Rs3900 apiece levels.

In Q1FY23, Avenue Supermarts reported around 490 per cent YoY jump in standalone net profit at Rs680 crore against Rs115 crore in Q1FY22. Company's operational revenue shot up over 93.50 per cent to near Rs10,038 crore during April to June 2022 quarter against Rs5,183.12 crore in the first quarter of the financial year 2021-22.