Avenue Supermarts down nearly 3%; Citi maintains sell with target Rs 1,255

Representative image

Share price of Avenue Supermarts was down nearly 3 percent intraday Friday as Citi has maintained sell call on the stock post analyst meet which held on June 14, 2018.

According to research house, the management not concerned about slowing SSS or average bill sizes. Also, they doesn’t expect upside to margins from current levels as they will pass on benefits to the consumers.

The company is going to focus on store ownership model which will benefit in long-term. The company management is not worried about the competition and believes that there is large consumption opportunity.

According to Citi, DMart’s e-commerce still miniscule and investments could continue. It has maintained sell call with a target of Rs 1,255.

JPMorgan has maintained underweight rating on Avenue Supermarts with a price target of Rs 1,050.

The company's focus to remain on competitive pricing, sharper product assortment, store additions and on fine tuning the e-commerce model, JP Morgan said post the analyst meet.

The company has no plans for a loyalty program, unlike peers, it said.

HSBC has increased the target price of Avenue Supermarts to Rs 1,850 from Rs 1,600.

According to research house, the value retailing focus remains the key proposition, while core operating focus is maximising throughput.

D-mart is a winning model for India and grocery retailing a large opportunity, it added.

Prabhudas Lilladher has maintained reduce rating on the stock with a target of Rs 1,197.

D'Mart Analyst Meet indicated positive growth outlook given just 3% penetration of organised retail in food and grocery, said Prabhudas Lilladher.

Management indicated their intention to accelerate store openings in calibrated manner given bandwidth required, it added.

At 11:13 hrs Avenue Supermarts was quoting at Rs 1,543, down Rs 24.60, or 1.57 percent on the BSE.