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The shares of Avenue Supermarts Ltd, which owns supermarket chain D-Mart, plunged as much as 9.5 per cent to Rs 1,422.15, their lowest since November 28.
The company's Q3 profit rose 2 per cent to Rs 2.57 bn, it said on Saturday . However, the company’s expenses surged over 36 per cent to Rs 50.65 bn.
Citi has cut the price target to Rs 1,190 from Rs 1,255, following the subdued trend with continuing disappointment. “Maintain Sell at current valuations; incrementally more challenging store economics and long-term eCommerce impact are key issues,” Citi said in its report.
Jefferies said that the gross margin dip of 170 bps is led by the company’s price cuts, but it has raises the price target to Rs 1,420 from Rs 1,375, citing management's strong execution, focus on market share gains.
Six of 17 brokerages rate the stock “buy” or higher, one “hold” and ten “sell” or lower; and their median price target is Rs 1,280.
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