DMart shares plunge sharply after surging to record high
D-Mart share price surged to record high in early deals after Q2 net profit more than doubled
Shares of DMart's parent Avenue Supermarts slipped as much as 8% to ₹4,993 in Monday's afternoon session after briefly hitting a record high in early deals post reporting a significant rise in its consolidated net profit for the second quarter of the current fiscal.
Avenue Supermarts, which owns and operates retail chain D-Mart, on Saturday reported a two-fold increase in its consolidated net profit to ₹417 crore for the second quarter ended September 2021. The company had posted a net profit of ₹198.53 crore in the July-October quarter a year ago.
Easing covid-19 restrictions attracted more shoppers and boosted revenue by 47%. The Mumbai-headquartered company added eight stores during the quarter.
The stock surged as much as 11% in early deals to a record high of ₹5,900. However, gave up its gains in the afternoon deals as several brokerages flagged limitations to the stock's upside due to high valuation.
Meanwhile, the surge in shares of the retail firm this year helped Ignatius Navil Noronha, the chief executive officer of Avenue Supermarts Ltd wealth surge to more than a billion dollars as the stock hit record high in early session. Naronha achieved this wealth on the back of 19-fold rise DMart's shares. The stock was listed in March 2017 with an IPO issue price of ₹299 apiece and has surged around 1,800% from the same.
Promoted by Radhakishan Damani and his family, DMart retails basic home and personal products across markets which include - Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!