Avenue Supermarts Ltd. has estimated a 16% year-on-year revenue growth in the first quarter of fiscal 2026.
Standalone revenue for the operator of the DMart retail chain during the April–June period is forecasted to increase to Rs 15,932.1 crore, according to its quarterly business update released on the bourses on Wednesday.
As of June 30, the DMart retail chain operator has 424 stores across India.
Last month, DMart announced the opening of its first major store in Uttar Pradesh. The new store, located at Ratan Mall in Agra, marks a strong step for the retail giant, which has previously only had a presence in Ghaziabad, part of the National Capital Region.
The company follows an ownership model for its retail stores and employs a cluster-based approach for expansion, focusing on increasing penetration in existing areas before moving into new regions.
But Morgan Stanley maintained an 'underweight' rating on Avenue Supermarts with a target price of Rs 3,260. The brokerage firm views the opening of the Agra store as a positive step. "We view this opening in the state of Uttar Pradesh as a positive step and would closely track the company's pace of expansion in the state, where the opportunity to open stores remains large," the note stated.
Avenue Supermarts is one of India's leading retail chains, operating under the brand name DMart. The company focuses on providing a wide range of products at competitive prices, catering to the needs of the Indian middle class.
The shares of Avenue Supermarts closed 1.22% lower at Rs 4,398 per share. This compares with a 0.35% decline in the benchmark Nifty 50. It has fallen 7.87% in the last 12 months and risen 23.48% year-to-date.
Out of the 31 analysts tracking the company, nine maintain a 'buy' rating, as many recommend a 'hold,' and 13 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 8.8%.
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