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Positive Outlook on Avenue Supermarts Ltd.: Buy Rating Driven by Robust Store Expansion and Long-term Growth Potential

Positive Outlook on Avenue Supermarts Ltd.: Buy Rating Driven by Robust Store Expansion and Long-term Growth Potential

Avenue Supermarts Ltd. (DMARTResearch Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Jignanshu Gor from Bernstein maintained a Buy rating on the stock and has a INR5,800.00 price target.

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Jignanshu Gor has given his Buy rating due to a combination of factors influencing Avenue Supermarts Ltd. Despite challenges in its online segment, DMart remains India’s most efficient offline retailer. The company’s core business strategies are anchored in a robust store opening plan with a projected CAGR over the next 5 to 10 years, coupled with expectations of double-digit same-store sales growth (SSSG).
Furthermore, the stability in profit margins also contributes to the positive outlook. While the DMart Ready online platform faces hurdles, improvements and strategic pivots in this segment could enhance customer retention and bolster the overall growth narrative. Thus, Gor sees potential upside in DMart’s long-term strategies, justifying the Buy rating.

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