The stock price of Avenue Supermarts added almost 4 percent in early trading on July 11 after the company came out with a June quarter income.

DMART Operators on July 9 reported that 490 percent of Mandiri growth in-year-year in Mandiri profit for the quarter ended in June.

Mandiri’s profit jumped to RS 680 Crore during the June quarter, up from RS 115 Crore in the last period of fiscal. In sequence, profit rose by almost 46 percent.

Mandiri income from operations grew 95 percent year-to-year to RS 9,807 Crore during the quarter ended in June. In sequence, revenue growth reaches 14 percent.

This is what the broker said about shares and companies after the June quarter income:

Prabhudas Lilladher

We increase the estimated FY23/24 revenue per share (EPS) by 6.3/6.5 percent and the target price to RS 4636 (RS 4340 previously) after the momentum of sales and strong profits.

Zero Covid’s impact caused a normal quarter because the company monetized 110 large shops to open in the last three years.

Sales/shops in the entire system on average at RS 34.7 Crore are 8% higher than the first quarter of 2020, although there are additional additional shops in the last 6 months. The discretionary non-FMCG segment is also restored assisted by the season back to school, although it remains lower than the pre-covid level.

Although dirty margins and core profit margins tend to go to the first quarter of 2020, considering that their seasonal cannot be extrapolated and must normalize this year. We estimate the profit of 31% year to year after tax growth for three quarters of 2022-23 and 47.3% profit after the annual tax compound rates are more than FY22-24.

We maintain purchases with a DCF -based target price of RS 4636; The return may be a little reversed considering the 17% leap in the stock price in the last 5 sessions.

Jefferies

The Broker’s house has maintained a ranking of resistant to stock and raised the target to 3,900 RS per share.

Estimated core profit knock on better dirty margins.

This management oversees potential volume stress in the discretionary segment, CNBC TV18 reports.

Morgan Stanley

This has maintained an overweight ranking in stock with a target of 4,322 RS.

Income is in front of estimates. Outlook demand will increase as a normal set, CNBC TV18 reports.

At 09:19 hours Avenue Supermarts quoted RS 4,059.80, took RS 117.75 or 2.99 percent in BSE.

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