Stock Tips: This stock has slipped by about 2 thousand rupees and still there is a possibility of a fall of 31 percent in it.
Avenue Supermarts (D Mart) Outlook: Today there is a sharp sell-off in the shares of D Mart, the company of stock market veteran RK Damani. Its shares have fallen by about one and a half percent today on July 12, at a price of Rs 3924 on NSE. Its current price is at a discount of about Rs 2 thousand i.e. 34 percent from the record price of 52 weeks and experts of brokerage firm HDFC Securities estimate that it may slip 31 percent more now. Experts have kept its target price at Rs 2700 with sell rating.
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This is why the brokerage firm gave the sell rating
- In the first quarter April-June 2022 of the current financial year 2022-23, D-Mart’s profit increased nearly 6 times to Rs 680 crore. However, in the case of unit economics, it is still less than before Corona.
- Talking about revenue, in the June 2022 quarter, it reached Rs 9800 crore with a jump of 95 percent on an annual basis, but category sales were lower than before Corona.
- Due to all this, the market experts of HDFC Securities have retained its sell rating and the target price has been fixed at Rs 2700 per share, about 31 percent below the current price.
Shares are at 34% discount
The shares of Avenue Supermarts (D-Mart) are currently available at a price of Rs 3924. Last year on October 18, 2021, it was at a price of Rs 5900, which is a record high level of 52 weeks, but after that it weakened. On May 16 this year, it slipped to a price of Rs 3186, which is a 52-week low. Since then it has strengthened about 23 percent, but now experts estimate that it can slip about 31 percent further. So far this year, it has weakened by 16.71 percent.
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