Shares of Avenue Supermarts — owner and operator of D-Mart — rose almost 5 percent in early trade on Monday after the company's revenue for the April to June 2022 quarter nearly doubled.
The stock was up 2.9 percent at Rs 3486.80 on BSE at 9:57 am. However, it has erased more than 25 percent of investors’ wealth in 2022 so far (year-to-date) as against the benchmark Sensex which has declined over 10 percent during the period.
Avenue Supermarts reported its standalone revenue of Rs 9,806 crore in the first quarter of the financial year 2022-23 (Q1FY23). This is almost double when compared to the company’s Rs 5,032 crore revenue in the same quarter in the past fiscal.
The standalone revenue from operations for June 30, 2022, is subject to limited review by the statutory auditors of the company, the company said in a regulatory filing on Saturday.
The firm’s revenue performance for the quarter is even better than the peak and pre-pandemic period.
|June 30, 2019||Rs 5,780.53 crore|
|June 30, 2020||Rs 3,833.23 crore|
|June 30, 2021||Rs 5,032 crore|
|June 30, 2022||Rs 9,806.89 crore|
In the business update, the D-Mart
owner also said that the total number of stores as of June 30, stood at 294.
Led by industrialist Radhakishan Damani
and family, D-Mart has a presence in an array of states including Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Maharashtra, Gujarat, Chhattisgarh, Tamil Nadu, Punjab, Rajasthan and Delhi-NCR.
Earlier in May, Morgan Stanley had given the company's stock an ‘equal-weight’ rating with a target price of Rs 4,338 as it believed improving demand and higher prices due to rising inflation will auger well for grocery retailers like D-Mart.
However, the brokerage cited operating margin pressure and failure to successfully expand DMart Ready in large cities among major risks for the company.