DMart Q2 Update: Everything you need to know!

DMart Q2 Update: Everything you need to know!

Last updated: 05 Oct, 2021 | 01:36 pm

DMart Q2 Update: Dmart (Avenue Supermarts) News, Revenue, Store count & More

Avenue Supermarts came out with an update on its Q2 numbers. D-Mart, its brand, retails personal and basic home products across markets like Maharashtra, Madhya Pradesh, Gujarat, Andhra Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan.

Dmart's Q2 Update:

  • Revenue: Standalone revenue from operations for the quarter ended September 30, 2021, stood at Rs 7,649.64 cr, up 46% from the same period last year. Last year, its stores were not fully operational so when comparing with Q2 numbers from 2019 (pre-pandemic) - The revenue for Q2FY22 was up 28% from Q2FY20.
  • Store count: Dmart added 8 stores in the three months. The total number of stores increased to 246 as of September 30, 2021, from 238 stores in the June quarter.
  • DMart has recently forayed into Haryana with the opening of a modern store at BPTP Parklands, Faridabad. Built on a plot size of 1.57 acre, the store in Sector 75 comprises three floors — basement, ground, and first floor — with a total built-up area of approximately 94,000 sq. ft.

Update on stock price

  • The stock price jumped 5% after the announcement and crossed the Rs 4400 mark on Monday morning at the start of the trading session.
  • Profit booking was seen later, and the stock closed at Rs 4,258 at the end of the trading session. The stock is trading near its 52 week high.

Brokerage outlook:

Macquarie: Outperform

  • Macquarie said that the Q2 update points to a sharp recovery in demand. The SSSG (Same Store Sales Growth) is now 6% above the growth seen in pre-Covid times.  
  • The global brokerage has retained its bullish stance on the stock. Macquarie has a target price of Rs 4,950 per share. This implies an upside of more than 10% from the current level. They have also upgraded the EPS by three percent for FY22, by one percent for FY23, and one percent for FY24. 
  • According to Macquarie, inflation will be an added tailwind for the shares. Avenue Supermarts shares ended Tuesday's session flat at Rs 4,257.10 on BSE.