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Avenue Supermarts slipped on weaker-than-expected quarterly results. The stock fell as much as 3.4 per cent to Rs 1,436.05, its lowest since April 9.
According to Kotak Institutional Equities, the company’s 73 per cent rise in March-quarter net profit was below estimate due to lower margins and slower-than-expected revenue growth of 22.5 per cent.
The company, which operates supermarket chain DMart, had on Saturday reported a net profit of Rs 167 crore ($24.89 million) for the March-quarter.
Total revenue for the quarter came in at Rs 3,810 crore, up 22.5 per cent YoY. The company had clocked Rs 3,111 crore sales in the same period last year.
Kotak and Ambit Capital has retained “sell” rating on the stock. Seven out of 13 brokerages have a “sell” or lower rating on the stock, two have “hold”, while four have “buy” or higher; their median target price is Rs 1,207.50.
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