Avenue Supermarts share price target: Avenue Supermarts , the parent company of DMart retail chain , is witnessing tremendous growth today. Its shares saw a strong rise of 15% on BSE and reached ₹ 4,160.4. The reason for this rise was the company's announcement of its Q3 business update.

Improvement in Q3 financial results, DMart's business booming

Avenue Supermarts in its Q3 update said that its revenue from standalone operations grew 17.4% year-on-year (YoY) to ₹15,565.23 crore from ₹13,247.33 crore in the previous year. During this period, the total number of DMart stores stood at 387 as of December 31, 2024.

Oswal's 'Buy' rating and target on DMart

Brokerage firm Motilal Oswal has maintained a 'buy' rating on DMart's stock with a target price of ₹5,300 per share. They believe Avenue Supermarts' annual revenue per store grew 4% YoY to ₹16.3 crore, much better than the meagre 1% growth in the previous quarter. Moreover, revenue per square foot also grew 3%, which was stable in the previous quarter.

Spectacular growth in the company's last quarter results

In the last quarter, Avenue Supermarts reported a 5.77% increase in its consolidated net profit to ₹ 659.58 crores, as against ₹ 623.56 crores in the previous year. During this period, the company's revenue grew by 14.41% to ₹ 14,444.5 crores, as against ₹ 12,624.37 crores in the previous year. Along with this, the company's Ebitda also grew by 29.3% to ₹ 1,093.8 crores, as against ₹ 846 crores in the previous year.

Decrease in DMart shares in 1 year

Avenue Supermarts shares have declined 8% in the last one year, while the Sensex has gained 12%. However, the stock has seen a rally due to the Q3 update and upcoming growth expectations.