Avenue Supermarts (DMart) shares rose 10% in early trading on Friday, December 3, following a solid business report for the third quarter of fiscal year 2024-2025.
In the most recent quarter, the company’s standalone revenue from operations was ₹15,565.23 crore, a 17.49% increase from ₹13,247.33 in the same period last year. The figure is also greater than the revenues reported in the three previous December quarters.
During the quarter, the company added 10 locations, bringing the total number of stores to 387 from 377 in the September quarter.
Avenue Supermarts is one of Radhakishan Damani’s portfolio stocks. According to the September 2024 quarter shareholding pattern, the ace investor owns 37.22 per cent of the company. Damani is also regarded as a company promoter. At the end of the September quarter, he owned 24.22 crore shares.
Stock Impact
Avenue Supermarts’ share price increased by 15% to ₹4,160.40 on the BSE after a positive earnings announcement.
The shares began at ₹3,790 on the BSE, up 4.76 per cent from its previous close of ₹3,617.75 crore. The stock rose to ₹4,160.40.
Despite today’s increase, Avenue Supermarts’ share price remains 32% behind its 52-week high of ₹5,484 reached in September 2024. However, the stock is trading over 22% higher than its 52-week low of ₹3,400 in December 2024.
Final Words
According to stockbroker Motilal Oswal Financial Services (MOSL), DMart’s standalone revenue increased by 17.5% YoY to ₹156 billion above their projection of ~15% YoY growth. This was due to 13% YoY store additions and likely high single-digit same-store sales growth. After a somewhat weaker second quarter, revenue growth improved to the 17-20% YoY range, it stated.
According to MOSL, the ramp-up in store expansions remains DMart’s primary growth driver. The company plans to open approximately 18 stores in the March quarter, bringing the total to 40 by FY25.
