DMART SHARE PRICE SURGES 10 PERCENT FOLLOWING STRONG BUSINESS UPDATE FOR Q3FY25

Mumbai, Dec 3: Avenue Supermarts (DMart), the retail giant owned by ace investor Radhakishan Damani, surged 15 percent to ₹4,160.40 apiece on the BSE in opening trade today, hitting its upper circuit, following a strong business update for the third quarter of the financial year 2024-2025 (Q3FY25).

The company posted standalone revenue from operations of ₹15,565.23 crore in the recently concluded quarter, up 17.49 percent compared to ₹13,247.33 reported in the corresponding quarter last year. This represents a notable improvement over revenues posted in the preceding three December quarters.

During the quarter, Avenue Supermarts added 10 new stores, increasing its total store count to 387 from 377 in the September quarter. The surge in store additions is expected to be a key growth driver for DMart, according to brokerage Motilal Oswal Financial Services (MOSL).

"DMart reported standalone revenue growth of 17.5% YoY to ₹156 billion, higher than our estimate of ~15% YoY growth, driven by 13% YoY store addition and likely high single-digit same-store sales growth," said a report from MOSL.

The brokerage has a BUY rating on DMart with a target price of ₹5,300, citing the company's continued ramp-up in store additions as key to its future growth potential.

Despite today's sharp surge, DMart's share price is still 32 percent away from its 52-week high of ₹5,484 scaled in September 2024. However, the stock is trading over 22 percent higher than its 52-week low of ₹3,400 hit in December 2024.

The report also noted that Ramco Retail Ventures, a separate retailer owned by Damani, reported standalone revenue growth of 11% YoY to ₹2,142 core, lower than expected.