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Avenue Supermarts shares get an upgrade after strong Q4 update; check new price targetAccording to Morgan Stanley, DMart stands to benefit from higher inflation, which typically supports same-store sales growth and reinforces its value-driven positioning.By Meghna Sen  April 6, 2026, 8:07:25 AM IST (Published)2 Min ReadShares of Avenue Supermarts Ltd., which operates the DMart chain, will be in focus on Monday, April 6, after the company reported a strong fourth-quarter business update.

The retailer posted Q4 revenue of ₹17,204.5 crore, marking an 18.9% increase from ₹14,462.39 crore a year ago, broadly in line with its 2–3 year revenue CAGR of 17-18%.

Store expansion remained aggressive, with 58 additions during the quarter and 85 stores added in FY26, taking the total network to 500 outlets.

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Brokerages remain positive on the stock. CLSA has maintained a 'high conviction outperform' rating with a price target of ₹6,583.

CPI inflation for the quarter, based on January and February data, stood at around 3%, compared to 0.6% in Q3, with March trends indicating further firming up of prices.

Morgan Stanley has upgraded the stock to 'overweight' and raised its price target to ₹5,188, citing stronger-than-expected revenue growth of about 19%, ahead of its estimates and recent trends.

The brokerage believes DMart stands to benefit from higher inflation, which typically supports same-store sales growth and reinforces its value-driven positioning.

With faster network expansion and favourable external tailwinds, analysts expect revenue growth to improve to 19-20% over FY27-FY28, compared to around 16% estimated for FY26.

Shares of Avenue Supermarts ended 1.45% higher at ₹4,333 in the previous session and have gained over 19% in the last six trading days.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsAvenue SupermartsDMartshare market today