Why did the shares of Avenue Supermarts fall? Price broken 12% in 3 days, prices at three months low

Shares of Avenue Supermarts, a company that runs a retail chain named D-Mart, saw a huge fall during intraday on Wednesday. Shares of Avenue Supermarts fell 8 per cent to Rs 4,165 in intraday trading on BSE, its lowest level in three months.

Avenue Supermarts’ December quarter results have been mixed and margins have been lower than analysts’ expectations. Shares of Avenue Supermarts have fallen up to 12 per cent in the last three trading sessions since the announcement of the results. Shares of Avenue Supermarts are now at their lowest level since September 16, 2021.

On Wednesday, shares of Avenue Supermarts closed 5.07 per cent lower at Rs 4,277.80 on the BSE. If we talk about the performance of the stock, then in the last one month, the share price of Avenue Supermarts has declined by 10.25 percent. However, in the last 6 months, it has given a profit of 27.47 to its investors. At the same time, in the last one year, it has given a return of 46.52 percent to the investors.

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Avenue Supermarts Result

Let us inform that the net profit of Avenue Supermarts grew by 24.57 per cent in the December quarter of the current financial year. The company said in a statement on Saturday that its net profit grew 24.57 per cent to Rs 585.79 crore in the third quarter of the financial year 2021-22, as against Rs 446.95 crore in the corresponding quarter of the previous financial year. At the same time, the company’s revenue from operations increased by about 22 per cent to Rs 9,065 crore, from Rs 7,432.7 crore in the corresponding quarter of the previous financial year.

Brokerage Opinion on Avenue Supermarts

Meanwhile, brokerage firm MACQUARIE has given Outperform Rating on AVENUE SUPERMART and has a target of Rs 5450 for the stock. He says that the third quarter results have been below expectations and the company’s position is better in the inflationary environment.

On the other hand, JEFFERIES has given Underperform Rating on AVENUE SUPERMART and has a target of Rs 3800 for the stock. He says that the Q3 results have been predictable with 22% revenue growth. However, there has been a slight weakness in the gross margin. They have reduced its EPS estimate by 3-9% due to Kovid.

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