Avenue Supermarts Ltd, the parent company of the retail chain Dmart, showed a good performance at the stock market today. Its shares rose by 15% on the BSE before shutting off for the day near ₹4,160. This gain came on the heels of a release by the company of its third quarter growth results after the market shut on Thursday, which raised investor interest and fueled strong buying momentum.
Dmart Q3 Report Key Highlights
- Revenue Growth:
The standalone revenue for the third quarter stood at ₹15,565.23 crore. This was a 17.4% growth over ₹13,247.33 crore in the same period last year.
- Store Expansion:
Dmart expanded its retail footprint as it increased the total number of stores to 387 across the country.
- Market Reaction:
At 10:30 AM today, Dmart shares traded on the BSE at ₹4,115 at 13.95% percent rise. The buoyancy propelled the market capitalization to ₹2,67,386.22 crores.
Positive Factors
- Brokerage Expectations
Positive sentiments released from a brokerage firm added to investors' confidence and strengthened the upside of the stock.
- Profit Growth:
While the consolidated net profit posted by the company during the quarter under review did see a marginal growth of 5.77% to reach ₹659.58 crore, its overall revenues rose by 14.41% to ₹14,444.5 crore and thus form a basis for this rally.
Investor Takeaway
Dmart's strong bottom line and aggressive expansion are maintaining it as the key player in the Indian retail sector. This rally is showing the market likes the growth trend and the operational performance being reported by Dmart.
