Stocks

DMart owner sees best day in eight weeks as profit surges

Reuters Mumbai | Updated on July 15, 2019 Published on July 15, 2019

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It had earlier posted a nearly 32 per cent surge in the June-quarter consol profit

Shares of Avenue Supermarts Ltd rose as much as 6.2 per cent to Rs 1,443.9, their biggest intra-day percentage gain since May 20.

The company, which owns and operates DMart stores, posted on Saturday a nearly 32 per cent surge in the June-quarter consol profit.

The total consol revenue rose 27 per cent.

“Revenue growth was in line with expectations. Gross margin was slightly ahead of expectations and continued operational efficiency has resulted in higher profit after tax margins,” said Avenue Supermarts.

“DMart has surprised us with a margin expansion driven by better gross margins and operational efficiency, especially after three quarters,” said Citi.

It rose the target price to Rs 1,255 from Rs 1,190.

Up to the last close, the shares of Avenue have fallen 15.3 per cent this year, while peer Future Retail Ltd down six per cent in the same period.

Published on July 15, 2019
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