Nuvama Institutional Equities has retained its hold rating on Avenue Supermarts while raising the target price to ₹4,544 from ₹4,086. This implies a limited upside of around 6% from the current market price of ₹4,269.
The revised outlook follows management commentary highlighting an intensified focus on physical store expansion, particularly across North India. Avenue Supermarts is now targeting a 10–15% annual increase in its store network as part of its long-term growth strategy.
Nuvama also noted a shift in its valuation methodology to a sum-of-the-parts (SOTP) approach, now assigning separate valuations to core DMart operations and the digital segment, DMart Ready. The revision in estimates under this new framework led to the higher target price.
Despite a compelling growth narrative, Nuvama has chosen to maintain a cautious stance given the current valuation levels.
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.
