DMart shares drop 3% after Q2 update; Goldman Sachs trims target price

DMart share price

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26 Aug, 2025 12:21

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The shares of DMart-parent Avenue Supermarts dropped more than 3 percent on October 6 after the firm released its business update for the second quarter of the financial year 2026.

The stock hit an intraday low of Rs 4,269 apiece, the lowest level in around eight weeks. Goldman Sachs has cut its target price for the shares of the retail major. The stock later recovered some losses to close at Rs 4,300 apiece.

DMart Q2 business update:

The company had released its business update in an exchange filing during the post market hours of October 3. It reported a standalone revenue from operations at Rs 16,218.79 crore for the July-September quarter of the ongoing financial year. This marks a 15 percent year-on-year increase from the Rs 14,050.32 crore revenue reported in the same period last year.

Its total number of stores at the end of the quarter under review stood at 432. This however includes one store in Navi Mumbai that is currently closed for customers due to reconstruction.

The business update is however provisional, and is subject to review by the firm’s statutory auditors.

Goldman Sachs sees 24% downside potential:

Goldman Sachs maintained its ‘Sell’ rating on the stock, and reduced its target price to Rs 3,370 apiece from Rs 3,450 apiece. The latest target price implies a downside potential of nearly 24 percent from the stock’s previous closing price of Rs 4,418.4 apiece.

The international brokerage said that the sales growth during the quarter was weaker-than-expected despite a low base. It further cut its FY26 sales growth expectations to 18 percent from 20 percent earlier, and reduced earnings per share (EPS) estimates for the year by 2 percent.

Morgan Stanley maintains rating:

Morgan Stanley maintained its 'Equal-weight' rating on the stock, with a target price of Rs 4,552 per share. The international brokerage noted that DMart's 15.4 percent standalone revenue growth was lower than the estimated 18.3 percent.

Net store additions also reduced to 8 in Q2 from 9 in Q1. Morgan Stanley expects the company to report an EBITDA margin of 7.6 percent for the quarter under review.

DMart share price history:

DMart shares have dropped more than 5 percent in the past five days, and nearly 9 percent in the past one month. The stock has however increased nearly 7 percent in the past six months, and are up nearly 21 percent in 2025 so far.

Its P/E ratio currently stands at over 106.

Also read: Our LIVE blog on stock market updates

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