Avenue Supermarts share price target cut after Q2 business update; Goldman says 'sell'
Published on 06/10/2025 08:50 AM
Avenue Supermarts share price target cut after Q2 business update; Goldman says 'sell'JPMorgan maintained its "neutral" rating on Avenue Supermarts with a price target of ₹4,350, stating that the revenue growth during the quarter will weigh on the near-term stock price.By Hormaz Fatakia October 6, 2025, 8:50:08 AM IST (Published)2 Min ReadShares of Avenue Supermarts ltd., parent company of hypermarket chain DMart, will be reacting to the September quarter business update it reported after market hours on Friday.
DMart reported a standalone revenue growth of 15.4% during the July-September period to ₹16,218 crore, which is marginally lower than the three-year Compounded Annual Growth Rate (CAGR) of 15.8%.
The company added eight new stores during the quarter, taking the total count to 432. Store additions during the first half of the current financial year stood at 17.
Impact of GST cuts on the financial performance, performance of DMart Ready and outlook on store additions will be some important aspects to watch out for going ahead.
Brokerage firm Goldman Sachs maintained its "sell" recommendation on Avenue Supermarts and cut its price target on the stock to ₹3,370 from ₹3,450 earlier. It said that the sales growth during the quarter was weaker-than-expected despite a low base for Dmart.
There has also been no meaningful acceleration in store growth yet, and as a result, the brokerage has cut its financial year 2026 sales growth expectations to 18% from 20% earlier. Earnings per Share (EPS) estimates for financial year 2026-2028 have also been cut by 2%.
JPMorgan maintained its "neutral" rating on the stock with a price target of ₹4,350, stating that the revenue growth during the quarter will weigh on the near-term stock price.
Out of the 31 analysts that have coverage on Avenue Supermarts, 10 analysts each have a "buy" and "hold" rating respectively, while 11 have a "sell" rating.
Shares of Avenue Supermarts ended 0.7% lower on Friday at ₹4,420. The stock has risen 24% so far in 2025.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsAvenue SupermartsDMartshare market today