Avenue Supermarts Ltd., which operates the DMart retail chain, extended its losing streak to a third consecutive session on Monday, with shares declining over 4% during the session.
The stock was trading at Rs 3,373 on the NSE at around 9:43 a.m. on Monday, Oct. 12, down 4.06%, from its previous close of Rs 3,516.80. Meanwhile, Nifty 50 remained muted, at the 22,520 level.
The stock started declining on Oct. 8, as investors were waiting for the Q2 results, which were announced on Oct. 10.
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Revenue, Profit Rise but Misses Estimates
The company's reported earnings fell short of the estimates provided. Net profit came in at Rs 804 crore against an estimate of Rs 879 crore.
Ebitda stood at Rs 1,403 crore, below the estimated Rs 1,468 crore. The Ebitda margin of 7.3% also missed the estimate of 7.7%.
While Avenue Supermarts recorded double-digit revenue growth during the quarter, the shortfall against profit and operating earnings estimates, alongside the year-on-year margin contraction, remained key points in its latest results.
The stock's movement on Monday extended its decline to a fourth consecutive session, with the shares trading lower in early deals.
Dmart Stock Price Performance
The stock has been down more than 1.3% over the past year, while in the past month itself, it has lost almost 8%, and the current losing streak further added to the downward pressure.
Currently trading at a price-to-earnings multiple of 73.6 times, with a market cap of Rs 2,21,489.7 crore on the NSE.
Also Read: DMart Q2 results: Avenue Supermarts Net Profit Rises 8% to Rs 804 Crore, Misses Estimates
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