CLSA has upgraded Avenue Supermarts to a high-conviction outperform rating and raised its target price to ₹6,408, indicating a potential upside of 50% from the current market price of ₹4,269. The upgrade follows key takeaways from a recent analyst meet that reinforced the brokerage’s long-term bullish view on the DMart parent.
CLSA highlighted four major drivers underpinning its positive stance:
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The company has a focused strategy on accelerating store additions to drive sales growth.
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A continued push toward private label development is seen as central to building a long-term competitive moat.
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Management acknowledged that near-term margins may be volatile due to the pace of business expansion.
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Avenue Supermarts has a clear roadmap for DMart Ready, aimed at bridging the gap between value retail and convenience formats.
CLSA described the company’s strategic clarity as increasing its confidence in Avenue Supermarts’ position to capitalize on what it views as one of the largest multi-decadal opportunities in Indian retail.
Disclaimer: The views expressed in this article are based on brokerage reports and do not constitute investment advice. Please consult your financial advisor before making any investment decisions.
