UBS has issued a ‘buy’ call on Avenue Supermarts, the parent company of DMart, setting a price target of ₹6,000. The brokerage’s optimism is based on strong demand signals from recent channel checks and encouraging insights from DMart store visits.
According to UBS, footfall at DMart stores remains robust, translating into healthy sales growth across locations. This is a positive indicator for the company’s continued expansion and market dominance in the retail sector.
Additionally, UBS highlights the potential of DMart’s Minimax stores, a smaller-format version focusing primarily on grocery items. This format is designed to cater to a specific customer base, allowing DMart to penetrate deeper into urban and suburban markets.
Overall, UBS sees Avenue Supermarts as well-positioned to capture growing consumer demand, making it a strong buy at the current valuation, with significant upside potential.