Oct 14, 03:31 AM

Avenue Supermarts' Q2 Earnings Up 5.8%, Shares Drop 8% Amid Multiple Downgrades

Avenue Supermarts, the parent company of D-Mart, reported a 5.8% increase in its September quarter profit after tax (PAT), which fell short of market estimates. The company has started to feel the impact of online grocery formats on its business. Following the earnings release, several brokerages have downgraded their ratings for Avenue Supermarts. Morgan Stanley downgraded the stock to 'Underweight' from 'Overweight' and cut its target price to Rs 3,702 from Rs 5,769. JPMorgan downgraded the stock to 'Neutral' from 'Overweight' and reduced its target price to Rs 4,700 from Rs 5,400. Nuvama maintained a 'Hold' rating but lowered the target price to Rs 5,040 from Rs 5,183. The stock hit a six-month low and slipped below the 200-day moving average (DMA) level, with shares dropping 8%. Additionally, Trent has overtaken Avenue Supermarts in market capitalization.

#Avenue Supermarts #Morgan Stanley #JPMorgan #Neutral #Nuvama #Trent

Written with ChatGPT (GPT-4o).