Avenue Supermarts (DMart) shares fell 2% after Goldman Sachs maintained its ‘Sell’ rating, slashing its target price to ₹3,425 from ₹4,000.
The brokerage cited rising competitive pressures and a lack of differentiation in key market segments. Goldman Sachs has reduced its earnings estimates for DMart by 4.2%, 6.2%, and 6.1% for FY25, FY26, and FY27, respectively.
The report highlights DMart’s increased grocery price discounts, rising from 15% to 25% in just five months, signaling heightened pricing challenges. Furthermore, DMart lacks a significant competitive edge in fresh food categories in urban markets, which are critical for growth. The company’s operating model also limits its reach in India’s vast grocery market, constraining expansion potential.
DMart shares opened at ₹3,700.00, reaching a high of ₹3,760.00 and a low of ₹3,676.90 during the session. The stock remains well below its 52-week high of ₹5,484.85 and above its 52-week low of ₹3,564.00.
As of 9:53 am, DMart shares were trading 1.96% lower at Rs 3,742.00 on the NSE.
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