UBS keeps a 'Buy' on Avenue Supermarts as footfall, sales rise

Avenue Supermarts Ltd

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26 Aug, 2025 12:21

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UBS has reiterated its 'Buy' on Avenue Supermarts  after observing strong demand signals through channel checks conducted recently on retail chain DMart, setting a target price of Rs 6,000.

Avenue Supermarts shares have gained 32 percent in the past six months, outperforming the Nifty 50 index which gained 12 percent during the same period. The stock gave positive returns in June as well as July, and has gained nearly 3 percent so far in August.

UBS said Avenue Supermarts has been seeing strong store footfalls and mid-teens sales growth compared to what they saw in July and August last year.

Avenue Supermarts has been increasingly focusing on private labels in the grocery segment, said UBS, with the general merchandise section seeing a wider range of items.

In the apparel segment, DMart has been further introducing trendier assortments at affordable price points, UBS noted. The company has also been expanding the Minimax format, featuring relatively smaller stores concentrated on grocery items, with a lower share of apparel. DMart Minimax is a grocery delivery service in Mumbai, that caters to customers in Kurla West and the surrounding neighbourhoods.

Avenue Supermarts, on July 13, reported a consolidated net profit of Rs 773.8 crore for Q1 FY25, marking a 17.5 percent increase from Rs 658.8 crore in the same period last year. Consolidated revenue from operations rose 18.6 percent year-on-year to Rs 14,069 crore, compared to Rs 11,865 crore a year ago.

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