DMart's First Major Store In UP A Positive But Morgan Stanley Remains 'Underweight'

Avenue Supermarts Ltd., the parent company of DMart, has announced the opening of its first major store in Uttar Pradesh, India's most populous state. The new store, located at Ratan Mall in Agra, marks a strong step for retail giant, which has previously only had a presence in Ghaziabad, part of the National Capital Region.

This latest addition brings DMart's total store count to 421, with six net new store additions in the first quarter of FY26. 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.

"DMart follows an ownership model for its retail stores, with a cluster-based approach for store expansion," Morgan Stanley highlighted. The cluster-based approach implies that DMart prioritises opening stores near existing ones and distribution centers, which helps in optimising logistics and supply chain efficiency.

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.