DMart Share Price Locked In Upper Circuit As UBS Positive After Q3 Update

Avenue Supermarts, which runs DMart, saw a surge in its stock price on Friday after it reported an 18% annual growth in its standalone revenue from operations to Rs 15,565.2 crore in the quarter ended December.

The surge came after a UBS note said, "We believe DMART's strong performance in Q3 likely indicates strong operational execution amid a rise in competition from quick commerce."

The company opened a total of 387 stores as of Dec. 31, according to Thursday's exchange filing.

Meanwhile, Macquarie retaining its 'underperform', said, "While the general merchandise/apparel sales recovery aided the 3Q sales print, we worry that competitive headwinds from quick commerce is weighing on growth momentum."

The scrip rose as much as 15% to Rs 4,152.75 apiece, the highest level since October 24. It was locked in its revised upper circuit of 15% at 9:44 a.m. This compares to a 0.5% decline in the NSE Nifty 50 index.

It has risen 5.60% in the last 12 months. Total traded volume so far in the day stood at 2.89 times its 30-day average. The relative strength index was at 73.80, indicating that the stock may be overbought.

Out of 29 analysts tracking the company, nine maintain a 'buy' rating, nine recommend a 'hold,' and eleven suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 8.2%.