Even though the stock has dropped from its 52-week high, brokerage company Prabhudas Lilladher still rates the Avenue Supermart, which is run by Radhakishan Damani, as a “Buy.” The brokerage stated that despite Avenue Supermart’s expansion into 22 cities and one-day delivery, it continues to have a “positive” outlook on the company. The cost of delivery has also been decreased by the business.
According to Prabhudas’ analysis, DMart is well-positioned to become EBITDA positive by FY25 and PAT positive by FY27 thanks to competitive pricing and a significantly superior consumer proposition against Big Basket.
The brokerage added that D’mart’s rapid expansion is a result of the low likelihood of heightened rivalry in contemporary trade, and D’mart may continue to expand in the future. ‘Buy’ with a 4699 target price.