D-Mart shares dropped by over 3%, trading at ₹4,793.15 following a weaker-than-expected Q2 business update. Despite reporting a 14% year-on-year growth in standalone revenues to ₹14,050 crore for the quarter ended September 2024, several analysts flagged concerns over the slower pace of growth.
Morgan Stanley maintained its ‘Overweight’ rating on the stock with a target price of ₹5,769, highlighting slower operational improvements. Macquarie continues to rate the stock as ‘Outperform’ with a target of ₹5,600, while Goldman Sachs retained a ‘Sell’ rating with a target price of ₹4,050, citing the rise of quick commerce as a challenge for D-Mart.
The company added six new stores in Q2 and currently operates 377 stores across the country. However, analysts are cautious about its store expansion plans and future growth potential, with Citi also maintaining a ‘Sell’ rating.
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