External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

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Equity Bottom-Up

<ul><li>Avenue Supermarts (DMART) posted weak results in 3QFY25 as standalone EBITDA grew 10% YoY (4% miss) due to weaker gross margin and higher cost of retailing (CoR).</li><li>Management indicated that increased intensity in discounting in the FMCG category continued to impact the high turnover per sqft stores in metros.</li><li>However, the impact was relatively lower versus 2QFY25. DMART’s like-for-like (LFL) growth for over two-year-old stores rose to 8.3% in 3Q (vs.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts (DMART) posted weak results in 3QFY25 as standalone EBITDA grew 10% YoY (4% miss) due to weaker gross margin and higher cost of retailing (CoR).Management indicated that increased intensity in discounting in the FMCG category continued to impact the high turnover per sqft stores in metros.However, the impact was relatively lower versus 2QFY25. DMART’s like-for-like (LFL) growth for over two-year-old stores rose to 8.3% in 3Q (vs.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts - Lower Margin and Higher CoR Result in Earnings Miss

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>In Q3FY25, DMart’s consolidated revenue grew by ~18% YoY with LFL growth at 8.3% (below our estimates).</li><li>The company added 10 stores during the quarter, taking the total store count to 387.</li><li>Rise of Q-commerce continues to impact stores in metro cities; however, the impact was less pronounced compared to Q2FY25. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In Q3FY25, DMart’s consolidated revenue grew by ~18% YoY with LFL growth at 8.3% (below our estimates).The company added 10 stores during the quarter, taking the total store count to 387.Rise of Q-commerce continues to impact stores in metro cities; however, the impact was less pronounced compared to Q2FY25. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts Ltd. - Subdued Margin Performance; Maintain HOLD

External broker reports(aggregated public sources), Prabhudas Lilladhar

Prabhudas Lilladhar

Prabhudas Lilladher is one of India's leading research based financial services organisation.

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>We cut our FY25/26/27 EPS by 5.0%/5.5%/4.9% and rating from Accumulate to Hold with target price of Rs4748 (Rs5168 earlier).</li><li>Q2FY25 revenue/PAT were miss on our estimate by 3.4%/12.5%.</li><li>This follows disappointing retail metrics as 1) Quick commerce and other online grocery platform players impacted sales in metro cities 2) lower SSG of 5.5% in 2Q vs 9.5% SSG in 1Q 3) tepid growth parameters with growth of 1.2% YoY in Sales/store, 1.6% YoY in bills/store/day and just 0.5% increase in sales/sq ft.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We cut our FY25/26/27 EPS by 5.0%/5.5%/4.9% and rating from Accumulate to Hold with target price of Rs4748 (Rs5168 earlier).Q2FY25 revenue/PAT were miss on our estimate by 3.4%/12.5%.This follows disappointing retail metrics as 1) Quick commerce and other online grocery platform players impacted sales in metro cities 2) lower SSG of 5.5% in 2Q vs 9.5% SSG in 1Q 3) tepid growth parameters with growth of 1.2% YoY in Sales/store, 1.6% YoY in bills/store/day and just 0.5% increase in sales/sq ft.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts - Online Retail Hurts 2Q Parameters

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Accelerated ramp-up of online grocery formats (quick commerce) in large metro cities led to deceleration of key growth metrics for DMART: 1) lowest revenue growth (+14% YoY) in a quarter ever, 2) LFL growth at 5.5% vs high-single digits earlier, 3) Footfalls (bill cuts) declined 1% QoQ vs +4% QoQ in base quarter, 4) Revenue throughput per store was flat YoY.</li><li>Retail expansion rate (14% YoY) was stable.</li><li>EBITDA margin was lower by ~30bps due to operating deleverage despite better gross margin (mix-led).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Accelerated ramp-up of online grocery formats (quick commerce) in large metro cities led to deceleration of key growth metrics for DMART: 1) lowest revenue growth (+14% YoY) in a quarter ever, 2) LFL growth at 5.5% vs high-single digits earlier, 3) Footfalls (bill cuts) declined 1% QoQ vs +4% QoQ in base quarter, 4) Revenue throughput per store was flat YoY.Retail expansion rate (14% YoY) was stable.EBITDA margin was lower by ~30bps due to operating deleverage despite better gross margin (mix-led).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts - Medium-Term Revenue Growth Rates [likely] Getting Reset Lower

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Our inferences from DMART’s FY24 annual analyst meet were threefold – (1) pace of store expansion will be a key monitorable, the bottleneck being the availability of unit economics-friendly real estate.</li><li>Currently primed to add 40-45 stores annually. This could keep the ask from SSSG for growth high (HSIE: 18% CAGR over FY24-27) in a disinflationary environment.</li><li>(2) GM profile likely to be stable (14-15%) while focus will be to improve revenue/SKU, ergo sourcing margins which could then be passed on to end consumer to earn higher sales density. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Our inferences from DMART’s FY24 annual analyst meet were threefold – (1) pace of store expansion will be a key monitorable, the bottleneck being the availability of unit economics-friendly real estate.Currently primed to add 40-45 stores annually. This could keep the ask from SSSG for growth high (HSIE: 18% CAGR over FY24-27) in a disinflationary environment.(2) GM profile likely to be stable (14-15%) while focus will be to improve revenue/SKU, ergo sourcing margins which could then be passed on to end consumer to earn higher sales density. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Avenue Supermarts: Pick-Up in Store Expansion Key. Maintain REDUCE

India

Avenue Supermarts Limited, operating as D-Mart, is an Indian retail corporation that runs a chain of hypermarkets and supermarkets. The company offers a wide range of basic home and personal products, including food, groceries, toiletries, beauty products, garments, kitchenware, and home appliances. Avenue Supermarts was founded in 2000 and is headquartered in Mumbai, Maharashtra, India.

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Avenue Supermarts (DMART IN)

Avenue Supermarts - Lower Margin and Higher CoR Result in Earnings Miss

Avenue Supermarts (DMART) posted weak results in 3QFY25 as standalone EBITDA grew 10% YoY (4% miss) due to weaker gross margin and higher cost of...

Motilal Oswal

Avenue Supermarts Ltd. - Subdued Margin Performance; Maintain HOLD

In Q3FY25, DMart’s consolidated revenue grew by ~18% YoY with LFL growth at 8.3% (below our estimates). The company added 10 stores during the...

Axis Direct

Avenue Supermarts - Online Retail Hurts 2Q Parameters

We cut our FY25/26/27 EPS by 5.0%/5.5%/4.9% and rating from Accumulate to Hold with target price of Rs4748 (Rs5168 earlier). Q2FY25 revenue/PAT...

Prabhudas Lilladhar

Avenue Supermarts - Medium-Term Revenue Growth Rates [likely] Getting Reset Lower

Retail expansion rate (14% YoY) was stable. EBITDA margin was lower by ~30bps due to operating deleverage despite better gross margin (mix-led).

ICICI Securities Limited

Avenue Supermarts: Pick-Up in Store Expansion Key. Maintain REDUCE

Our inferences from DMART’s FY24 annual analyst meet were threefold – (1) pace of store expansion will be a key monitorable

HDFC Securities

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