Morgan Stanley has maintained its equal-weight rating on Avenue Supermarts with a target price of ₹4,552 per share, citing a slower-than-expected growth quarter. The brokerage noted that standalone revenue growth stood at 15.4% year-on-year versus its estimate of 18.3%, suggesting a softer performance despite a low base.
During the quarter, Avenue Supermarts added eight new stores compared to nine in the previous quarter, reflecting a measured pace of expansion. Morgan Stanley estimates same-store sales growth at around 3–4% for the quarter, underscoring moderate consumer spending trends.
For Q2, the brokerage expects the company’s EBITDA margin to come in at 7.6%, which would be broadly stable but below historical peaks. Morgan Stanley added that while the company’s operational execution remains steady, a meaningful re-rating would require stronger sales momentum and faster store rollouts in the coming quarters.
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