Stock Tips: Shares of Avenue Supermarts (D-Mart) of veteran investor and businessman Radhakishan Damani fell by about 1 percent in intraday today to the level of Rs 4650.
Stock Tips: Veteran investor and businessman Radhakishan Damani’s shares of Avenue Supermarts (D-Mart) today (January 10) fell by about 1 percent in intraday, down to the level of Rs 4650. Due to the company’s financial results, investor sentiment remained bleak and its shares slipped due to the sell-off. Hypermart chain DMart’s net profit grew 23.62 per cent year-on-year in October-December 2021, but investors’ sentiments deteriorated due to its low margins. The company’s gross margin fell 20 basis points (0.20 per cent) year-on-year to 14.9 per cent. Market analysts have mixed trends regarding the quarterly results i.e. some are advising to sell it and some to hold it.
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Here’s the reaction of experts on the quarterly results
- Box Securities – Sell: According to Kotak Securities, due to the normalization of the situation regarding the corona epidemic in the last quarter, the performance of the company cannot be called excellent. The brokerage firm believes that the margins of the company will remain under pressure in this quarter as there are restrictions in a state like Maharashtra where DMart has the strongest presence due to the third wave of Corona. Giving it a sell rating, the brokerage firm has fixed its fair value at Rs 3200 per share.
- ICICI Securities – Sell: Brokerage firm ICICI Securities has given a sell rating to this stock. According to the brokerage firm, the company’s performance in the last quarter was not much better despite normal circumstances. Giving sell rating, the brokerage firm has fixed a target price of Rs 3900 per share for this.
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- Edelweiss – Reduce: According to analysts at Edelweiss, the company’s performance remained stable in the last quarter. The company kept expenses under control, due to which its EBITDA margin was 9.7 per cent as expected. The brokerage firm has given its valuation for the financial year
- 65x EV/EBITDA on Q1FY23 i.e. increased the target price from Rs 3782 to Rs 3966.
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- Prabhudas Lilladher – Accumulate: Analysts of Prabhudas and Lilladher Holding believe that the company’s growth was good despite rising inflation and low traffic. According to analysts, the 67 stores that the company has opened in the last 24 months, their business will be fast now, due to which there is a possibility of strong growth going forward. Prabhudas & Lilladher Holdings has forecast net profit growth at a CAGR (Compound Annual Growth Rate) of 48.3 per cent for the financial year 2022-24 and has shown a positive outlook for the long term. The brokerage firm has fixed a target price of Rs 5345 for its shares.
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Company’s profits jump in December quarter
Avenue Supermarts earned a revenue of Rs 9243 crore in the December 2021 quarter, which was about 22 percent more than Rs 7587 crore in the same quarter a year ago. The company’s net profit jumped year-on-year to Rs 552.53 crore in the December quarter from Rs 446.95 crore. Talking about the company’s stores, so far in this financial year 2021-22, the company has opened 79 stores in which 17 stores were opened in the last quarter.
(Article: Kshitij Bhargava)
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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