ICICI Securities maintains ‘reduce’ rating on Avenue Supermart, check target share price here

ICICI Securities has maintained its ‘reduce’ rating on Avenue Supermart with a target price of ₹3,300, implying a downside from the current market price (CMP) of ₹3,702.35.

Key Highlights:

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  1. Medium-Term Growth Uncertainty:
    • The brokerage expressed concerns over the uncertainty in Avenue Supermart’s medium-term growth trajectory.
  2. Improved Like-for-Like Growth:
    • The company’s like-for-like growth trajectory has shown improvement, reflecting some positive operational trends.
  3. Earnings Estimates Cut:
    • ICICI Securities has revised down earnings estimates by 1% and 3% for FY25 and FY26, respectively, citing lower margin assumptions.

While the company has shown signs of operational recovery, the medium-term growth and margin challenges keep ICICI Securities cautious on the stock’s valuation.

Disclaimer: The above information is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.