Image Source: Private Banker International
HSBC has raised its target price for Avenue Supermarts (AVE-UNS), operator of D-Mart, to ₹3,500 from ₹3,400. The upgrade reflects stronger-than-expected earnings momentum, margin resilience, and steady revenue growth. Despite elevated costs, analysts see Avenue Supermarts’ retail expansion and operational efficiency as key drivers of long-term investor confidence.
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Global brokerage HSBC has revised its target price for Avenue Supermarts Ltd (AVE-UNS) to ₹3,500 from ₹3,400, signaling optimism about the company’s growth trajectory. The operator of the popular D-Mart retail chain continues to deliver resilient performance despite rising operating expenses and competitive pressures in India’s retail sector.
Key Highlights
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Target upgrade: HSBC’s revision reflects confidence in Avenue Supermarts’ ability to sustain earnings growth.
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Revenue momentum: The company reported consolidated income of nearly ₹14,897 crore for the March 2025 quarter, supported by strong consumer demand.
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Margin resilience: Despite a 30bps contraction in operating margins, gross margin decline appears to have stabilized.
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Industry positioning: Avenue Supermarts remains a leading player in India’s organized retail space, with expansion plans driving optimism.
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Investor sentiment: Shares currently trade above ₹4,000, indicating market confidence even as brokerages differ in outlook.
This recalibration underscores Avenue Supermarts’ balancing act between cost management and growth expansion, with analysts highlighting its ability to maintain profitability while scaling operations.
Sources: Economic Times, Business Upturn, CNBCTV18
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