Avenue Supermarts Shares Drop 4.8% Amid Concerns Over Slower Revenue Growth

Shares of Avenue Supermarts, the parent company of DMart, fell by 4.8%, hitting an intra-day low of ₹4,703, as investors grew concerned about the firm’s moderate revenue growth. Despite strong quarterly results, the company’s stock declined due to lower store additions and weaker store productivity. Owned by Radhakishan Damani, the retail giant reported a 14% year-on-year increase in revenue for Q2 FY25, reaching ₹14,050.32 crore, and a 17.4% rise in net profit to ₹774 crore. However, growth moderation linked to the rise of quick-commerce and consumer preference for convenience over value raised concerns. Shares have fallen 7% over the last five days but delivered a 150% return over five years. In contrast, the Nifty 50 index gained 126% over the same period. Motilal Oswal maintains a “Buy” rating on the stock with a target price of ₹5,800.