DMart shares jump 6%, hit 52-week high as company reports 20% YoY rise in Q4 revenue
Avenue Supermarts reaches a 52-week high on posting a 20% YoY revenue growth. The stock has risen 27% in the past 12 months, largely in line with Nifty's 29% gains. CLSA, meanwhile, recently initiated coverage on the stock.
Shares of jumped nearly 6% on Thursday to hit a fresh 52-week high of Rs 4,715 on the NSE after the operator of chain of stores reported a 20% year-on-year (YoY) increase in its March quarter revenues at Rs 12,393.46 crore. In the corresponding period of the previous financial year, the company had reported a revenue of Rs 10,337.12 crore.The announcement came as a part of the company's quarterly update.
With nearly 27% returns in the past 12 months, the stock has performed in tandem with Nifty50 which has risen around 29%. The stock is trading above its 50-day and 200-day simple moving averages (SMAs) and has now fallen into an overbought zone. Momentum indicators MFI and RSI as reported by Trendlyne stand at 70 and 79. A number above 70 is considered to be overbought while below 30 is seen to be oversold.
Recently, Hong Kong-based brokerage CLSA initiated a ‘buy’ rating on Avenue Supermarts for a price target of Rs 5,107. CLSA in a brokerage note said that the private labels under the brand are rising and should drive the next leg of share gains. The company offers the lowest consumer prices due to the lowest operating cost in its view. The $500 billion addressable market is less than 5% organised.
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The Radhakishan Damani-owned company reported strong numbers for the December quarter, with the consolidated net profit rising 17% YoY to Rs 690.61 crore. Consolidated revenue from operations at Rs 13,572.47 crore, too, increased by more than 17% from the year-ago period.
Earnings before interest, taxes, depreciation and amortization or EBITDA during the quarter grew by 16% YoY to Rs 1,119.89 crore. However, operating margin dipped marginally to 8.25% from 8.34% a year ago.
The total expenses during the quarter, including finance costs, were Rs 12,656.46 crore, compared to Rs 10,789 crore a year ago. Staff expenses rose to Rs 234.31 crore from Rs 192.31 crore a year ago.
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Source: Stocks-Markets-Economic Times
