
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:
- Medium-Term Growth Uncertainty:
- The brokerage expressed concerns over the uncertainty in Avenue Supermart’s medium-term growth trajectory.
- Improved Like-for-Like Growth:
- The company’s like-for-like growth trajectory has shown improvement, reflecting some positive operational trends.
- 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.