Q3 FY25 Results – Darling of the Stock Market Down 35 Per Cent from 52-Week High
The stock has fallen 35 per cent from its 52-week high, reflecting investor concerns following the underwhelming quarterly results.
Avenue Supermart Ltd., the parent company of DMart and often referred to as the darling of the stock market, has reported a modest 5.8 per cent year-on-year (YoY) increase in net profit for Q3 FY25, falling short of market expectations. The company recorded a net profit of Rs 659.44 crore for the quarter ended September, compared to Rs 623.35 crore in the corresponding quarter of the previous fiscal year. This was significantly below the market consensus of Rs 812 crore.
Financial Performance
Avenue Supermart’s revenue for Q3 FY25 stood at Rs 14,444.50 crore, reflecting a 14.4 per cent YoY growth from Rs 12,625.20 crore in the same quarter last year. Despite the revenue growth, the company's performance missed the street estimate.
The company's operating earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 8.8 per cent YoY to Rs 1,093.77 crore in Q3 FY25, compared to Rs 1,005.36 crore in Q3 FY24. However, the EBITDA margin declined by 40 basis points to 7.6 per cent in Q3 FY25, down from 8 per cent in the same period last year, and well below the 8.3 per cent forecast.
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Stock Market Performance
Avenue Supermart currently has a market capitalization of Rs 2,32,962.44 crore. The company’s shares are trading at Rs 3,580.00 as of Tuesday, marking a 2.88 per cent decline from Friday’s close. The stock has fallen 35 per cent from its 52-week high, reflecting investor concerns following the underwhelming Quarterly Results.
About the Company
Avenue Supermart Ltd. operates DMart, a leading retail chain known for offering value-for-money products across various categories, including groceries, apparel, and home essentials. The company’s product portfolio spans Foods, Non-Foods (FMCG), and General Merchandise & Apparel categories. It offers a wide range of products such as grocery and staples, dairy and frozen foods, fruits and vegetables, home and personal care items, bed and bath products, crockery, footwear, toys and games, kids’ apparel, men’s and women’s clothing, and daily essentials.
Disclaimer: This article is for informational purposes only and not investment advice.