ICICI Securities Recommends 'Hold' on Avenue Supermarts, Sets Target at Rs 4000
Business
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Moneycontrol•12-01-2026, 11:10
ICICI Securities Recommends 'Hold' on Avenue Supermarts, Sets Target at Rs 4000
- •Avenue Supermarts (DMart) prioritizes stability over aggressive growth, showing execution discipline and cost control.
- •EBITDA margin positively surprised at 8.4% despite an unfavorable mix, indicating strong operational management.
- •Growth momentum is capped, with L2L moderating to 5.6% in Q3FY26, and store productivity remains below pre-Covid levels.
- •Staples-led mix and DMart ReADY expansion provide earnings visibility but limit ticket expansion and operating leverage.
- •ICICI Securities maintains a 'Hold' rating with a revised DCF-based target price of INR 4,000, down from INR 4,400.
Why It Matters: ICICI Securities advises 'Hold' on Avenue Supermarts, citing stable but not sharp growth, with a target of Rs 4000.
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