Shares of Avenue Supermarts Ltd, parent company of hypermarket chain DMart, fell nearly 3% on Monday in reaction to the September quarter business update.
After the update, Goldman Sachs maintained its sell call on the retail sector stock. It cut price target on the stock to Rs 3,370 from Rs 3,450 earlier. Sales growth during the quarter was weaker-than-expected despite a low base for DMart, said the brokerage.
Shares of the D-Mart operator touched an intraday low of Rs 4,299 , falling 2.68 per cent on BSE.
Total 8101 shares of Avenue Supermarts changed hands amounting to a turnover of Rs 3.51 crore on the BSE. Market cap of the firm slipped to Rs 2.82 lakh crore on BSE.
The share hit a 52-week low of Rs 3,310 on March 3, 2025 and a 52-week high of Rs 4916 on September 4, 2025.
Avenue Supermarts stock is trading lower than the 5-day, 10 day, 20-day, 30 day, 50-day, 100-day moving averages but higher than 150 day 200 day moving averages.
Avenue Supermarts shares have lost 9 per cent in a year and risen 21.44 per cent since the beginning of this year.
DMart clocked a standalone revenue growth of 15.4% during the July-September period to Rs 16,218 crore, marginally lower than the three-year Compounded Annual Growth Rate (CAGR) of 15.8%.
It added eight new stores during the quarter, taking the total count to 432. Store additions during the first half of the current financial year stood at 17.
Brokerage firm Goldman Sachs maintained its “sell” recommendation on Avenue Supermarts after the Q2 business update.
The global rating firm said it noticed no meaningful acceleration in store growth yet. Hence, the brokerage trimmed its financial year 2026 sales growth expectations to 18% from 20% earlier. Earnings per Share (EPS) estimates for financial year 2026-2028 are also reduced by 2%.
Meanwhile, JPMorgan maintained its “neutral” rating on the stock with a price target of Rs 4,350. The global brokerage is of the view that the revenue growth during the quarter will weigh on the near-term stock price.