Shares of Avenue Supermarts (DMart) hit the 15% upper circuit today, reaching ₹4,152.75 on the NSE, driven by positive market sentiment and strong quarterly updates. The stock witnessed a remarkable surge, with significant investor interest following a series of brokerage updates and its operational performance in Q3.
Key reasons for the 15% upper circuit of Avenue Supermart stock:
- Robust Q3 performance:
- Avenue Supermarts’ Q3 standalone revenues exceeded market expectations, driven by improved sales across key segments like general merchandise and apparel.
- The company added 10 new stores in Q3, taking its total store count to 387, indicating a solid expansion trajectory.
- Brokerage views fueling optimism:
- CLSA: Rated the stock as “Outperform” with a target price of ₹5,360, citing strong operational performance and growth potential.
- Morgan Stanley: Maintained “Underweight” with a target price of ₹3,702 but acknowledged sequential topline improvement and better same-store sales growth.
- Macquarie: Rated the stock as “Underperform” with a target price of ₹3,700 but highlighted a sequential recovery in sales growth and gross margin improvement.
- Strong trading activity:
- The stock opened at ₹3,840 and quickly climbed to the upper circuit limit of ₹4,152.75, recording a 15% intraday gain.
- The volume traded was 23.38 lakh shares, indicating robust demand.
Avenue Supermart stock price details:
- Open: ₹3,840
- High: ₹4,152.75 (Upper Circuit)
- Low: ₹3,820
- CMP: ₹4,152.75
- 52-week high: ₹5,484.85
- 52-week low: ₹3,399.00
- Lower Circuit/Upper Circuit: ₹3,430.60 / ₹4,152.75
The 15% upper circuit in Avenue Supermarts stock reflects a combination of strong quarterly performance, positive brokerage reviews, and robust market demand. While some brokerages have expressed caution due to competitive pressures, the overall sentiment remains optimistic, buoyed by the company’s expansion and operational resilience.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers should perform their own research or consult a financial advisor before making investment decisions.
