Avenue Supermarkets finds no takers

Avenue Supermarkets or the D-Mart company is not doing too well today; looks like the shoppers on Dalal Street are dumping it post Q2FY19 numbers.

The stock price slipped today over 7% to Rs.1310, with volumes almost doubling up.

The market is disappointed specifically with the margins of the company and using that pretext has gone into a profit booking mode. On a 39% (YoY) jump in revenue at Rs.4872 crore, the company’s net profit came in at Rs.226 crore, up 19%.

EBITDA was at Rs.390 crore, up 23%. Margins though tumbled down 110 bps from 9.1% to 8%.

Our Editor Mr.SP Tulsian said, “Results does not justify such high valuations. Renewed buying may now be seen below Rs.1300.”