Citi has reiterated its Sell call on Avenue Supermarts, setting a target price of ₹3,350 per share, indicating a potential downside of 32% from the current price of ₹4,941. The company’s Q2 update showed a year-on-year revenue growth of 14.2%, falling short of the estimated 19% growth.
Citi believes the company’s throughput continues to be affected by an adverse product mix and store additions. During the quarter, six new stores were added, but Citi remains cautious at current valuations due to risks surrounding future store additions and earnings growth.
Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.
