DMart share price gains after Q1 update on revenue, stores1 min read . Updated: 05 Jul 2021, 11:07 AM IST
- The company's standalone revenue from operations rose 31.27% to ₹5,031.7 crore for the quarter ended June 30
DMart share price surged over 2% to ₹3,377 per share on the BSE in Monday's early deals after the company gave a pre-quarterly update at the end of first quarter i.e., Q1FY22 on Friday.
Avenue Supermarts Ltd, parent of the Mumbai-based retailer D-Mart said that its standalone revenue from operations rose 31.27% to ₹5,031.7 crore for the quarter ended June 30. The company had revenue from operations of ₹3,833 crore in the April-June quarter a year ago, it informed in a regulatory filing.
Domestic brokerage Motilal Oswal in a note said that the company's revenue was up 30% year-on-year (YoY), but 5% below its estimate and 13% below pre-Covid (Q1FY20) levels. ''Category-wise, we estimate non-Discretionary revenue (Food and non-Food FMCG), which constitutes 77% of total revenue, to have achieved 95% of pre-COVID revenue (1QFY20), with Discretionary revenue touching 60% levels,'' the brokerage said. However, Motilal Oswal said that this is much better than other listed Apparel retailers, which are expected to clock 35-45% of pre-covid levels.
DMart's total number of stores as of June 30, 2021 stood at 238. It added four stores during Q1FY22. The management had indicated that the company will add 59 stores over FY20-22. It has added 20 stores in FY21.
''DMart's discretionary category has seen a healthy performance, benefiting from downtrading towards the value category. In the retail industry, DMart has seen the best recovery from pre-covid levels. Its well capitalized balance sheet should allow it to add stores at a steady pace,'' the note said. Motilal Oswal has a neutral stance on the stock with the target price of ₹3,105 per share.
The retailer said that its board will meet on Saturday, 10 July 2021, to consider earnings for the quarter ended 30 June 2021. D-Mart makes most of its money from selling food, staples, and beverages which makes up more of that half of its total sales.
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