Should you buy or sell Avenue Supermarts post Q4 earnings?
economictimes.indiatimes.comShares of Avenue Supermarts traded lackluster after a 22% year-on-year (YoY) jump in its March quarter net profit failed to impress Dalal Street investors.
Post its quarterly earnings, JPMorgan upgraded the stock and raised its price target price. Domestic brokerage Motilal Oswal and Prabhudas Lilladher maintained their buy ratings while Nuvama and Kotak Institutional Equities retained their 'Hold' and 'Sell' stance.
The stock fell 0.80% to the day's low of Rs 4,576 on the NSE.
Avenue Supermarts reported a consolidated net profit for the quarter ended March 2024 of Rs 563 crore as against Rs 460 crore in the corresponding quarter of the previous financial year. The company's revenue jumped 20% YoY to Rs 12,727 crore.
Here's what brokerages recommended:
JP Morgan: Overweight | Target: Rs 5,400
JP Morgan has upgraded the stock to 'Overweight' from 'Underweight' and hiked the target price to Rs 5,400 from Rs 3,555 following its Q4 earnings. In a note, JP Morgan said that the company's strong moats remain intact while robust revenue growth augurs well for the company.
It sees a gradual expansion in margin going ahead
The stock valuations are at a premium though remaining below historical average. In JP Morgan's view, the risk-reward is favorable now with business set well for acceleration. It will be ably supported by longevity of healthy growth.
Kotak Equities: Sell | Target: Rs 3,800
Kotak Equities has retained its estimate on the DMart operator maintaining a 'Sell' view for the price target of Rs 3,800
