DMart plunges 9.5% post Q3

Avenue Supermarkets or DMart is a big loser on the bourses today, going down 9.5% to Rs.1402.20 and the mood on the counter remains bearish.

Reporting the slowest growth over past 8 quarters, the numbers of DMart for Q3FY19 were disappointing. Net profit rose 2% (YoY) at Rs.257 crore on a 33% rise in revenue at Rs.5451 crore. The bigger discontent was over the margins – though EBITDA rose 7.5% to Rs.453 crore, margins dipped from 10.3% to 8.3% mainly on account of price cuts and higher operating hours during festive season.

Following this, most brokerage houses have given a bearish outlook on the stock, reducing the target price.