JPMorgan has reiterated its neutral stance on Avenue Supermarts with a target price of ₹4,350 per share, pointing to slower revenue growth that could weigh on the stock’s near-term performance. The brokerage expects second-quarter revenue growth of 15%, which is around 2% below Street expectations, reflecting subdued consumption trends and moderate traction across key categories.
Despite this, JPMorgan observed that the pace of store expansion has remained steady, indicating that the company continues to focus on its long-term retail footprint strategy. However, the brokerage added that near-term margins and revenue growth trends remain under pressure, especially in the context of rising competitive intensity within India’s modern retail space.
The note said investors should watch for improvement in same-store sales and demand recovery across higher-ticket segments for the stock to regain momentum. While the medium-term structural growth story remains intact, the brokerage believes near-term valuations fairly capture the company’s performance trajectory.
Disclaimer: The views and recommendations above are those of JPMorgan. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
