After CLSA Initiates Buy, Radhakishan Damani’s Avenue Supermarts Up 4%; Verify Target Price

Avenue Supermarts’ stock increased 4.4% on Thursday to reach a 52-week high of Rs 4,238 on the NSE after the DMart operator’s coverage by CLSA, which commenced coverage with a buy rating and a price target of Rs 5,107. With the current surge, the stock has increased by more than 8% after seeing an intermittent advance over the previous four days.

A possible gain of 26% from Wednesday’s closing levels was anticipated by CLSA. With regard to Avenue Supermarts, CLSA has the highest target on the street out of all 26 analysts who follow the company.

As Damani’s hypermarket chain, D-Mart, grows its footprint in new states and those it is currently in, CLSA anticipates that the number of shops will quadruple from the current 341 by the financial year 2034.

On March 20, Avenue Supermart’s shares increased for the third straight session. Over the previous five weeks, the company’s weekly performance has ended on a high note every time.

Avenue Supermart has gained around 6% over the last six months, while the stock has increased by more than 20% over the last year.

With its first location opening in Powai, Mumbai, Avenue Supermarts, founded by Radhakishan Damani in 2002, runs a retail empire under the D-Mart name.

The D-Mart operator recorded a combined net profit of Rs 690.41 crore for the third quarter of fiscal year 2023–24, up 17.09 percent from Rs 589.64 crore in the same time the previous year. In addition, consolidated income from operations increased from Rs 11,569.05 crore in the December 2022 quarter to Rs 13,572.47 crore, a 17.31% year-over-year increase.