BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
We cut earnings per share estimates of Avenue Supermarts Ltd. by 4.2/4.3/4.0% for FY23/24/25 following disappointing margin performance in Q3 FY23 (106 basis points YoY Ebitda margin decline to 8.3%).
Mix deterioration due to tepid growth in apparel and general merchandise impacted margins. Cost of retail also moved up by 50 bps YoY as operating leverage failed to benefit in a festival quarter.
We believe high inflation has impacted the discretionary spends in Q3 which surprisingly impacted even a deep value retailer like DMart.
While grocery centric DMart Ready ramp up and competition could be other reasons, but we remain confident of the business moat of DMart, both in offline and DMart ready model.
While we cut estimates, our Q4 FY23 estimates now factor in 28% sales growth, 8% Ebitda margins and 31% profit after tax growth. Given just 22 store openings in nine months-FY23, we expect addition of 18 stores in Q4.
Click on the attachment to read the full report:
More Research Reports On DMart Q3 FY23 Results Review
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
