Avenue Supermarts Advances 2% After CLSA Endorses Company’s Sustainable Growth Path

Avenue Supermarts Ltd (NSE: AVEU) saw renewed investor interest on Tuesday, with the stock edging up 2.3% intraday after global brokerage CLSA maintained its “Buy” rating and retained the company among its top retail picks in India. The brokerage highlighted sustainable volume growth, improving profitability, and consistent execution as key positives.

Key Highlights:

CLSA View: The brokerage reaffirmed Avenue Supermarts’ top rating, citing consistent performance in the grocery and FMCG segment despite cost pressures.

Stock Movement: Shares rose 2.3% to trade around ₹4,300, outperforming the Nifty FMCG index.

Growth Drivers: Store network expansion, rising same-store sales, and efficient supply-chain management continue to support earnings momentum.

Margins Outlook: CLSA expects operating margins to improve further as input costs stabilize and consumer demand strengthens.

Valuation Perspective: The firm maintains a long-term positive stance, valuing D-Mart’s disciplined growth model as a key differentiator in organized retail.

Sources: CLSA Research, NSE Data, Market Reports