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DMart Q4 Results Review: Dolat Capital Downgrades To 'Reduce', Cuts Target Price Citing Near-Term Headwinds

Dolat Capital's downgrade is driven largely by 10% stock runup since DMart's last result update and near-term headwinds.

<div class="paragraphs"><p>Avenue Supermarts Ltd.’s Q4 FY25 gross profit/Ebitda/adjusted profit after tax came soft, primarily due to higher discounting and increased opex</p><p>(Photo source: Vijay Sartape/NDTV Profit)</p></div>
Avenue Supermarts Ltd.’s Q4 FY25 gross profit/Ebitda/adjusted profit after tax came soft, primarily due to higher discounting and increased opex

(Photo source: Vijay Sartape/NDTV Profit)

In Q4 FY25/FY25, DMart’s standalone revenue grew healthily by 16.7% YoY. The same-store sales growth for two-year and older stores was strong at 8.4% YoY for FY25, led by higher footfalls vs 10.4% YoY. Gross profit grew by 14.7% YoY (-24 bps margin YoY to 13.5%) in the backdrop of increased discounting in the FMCG category (~20% of revenues), yet healthy.
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