DMart slides 4% after soft Q1; brokerages split between buy, hold and sell
Avenue Supermarts fell 4.23% to Rs 3,910 as 15% sales growth was dragged by muted 5.5% same-store growth. Emkay flags a sell, Antique holds, MOFSL stays buy—target prices range Rs 3,700 to Rs 4,800 amid rich valuations and slower store additions (3 stores in 1QFY27, 70-80 guided for FY27).
What happened
DMart shares fell 4% after weaker-than-expected Q1 results, with 15% sales growth dragged by muted 5.5% same-store growth. Brokerages issued mixed calls—Emkay
Key facts
- -4.23%
- Rs 3,910
- 15% YoY sales growth
- 5.5% SSSG
- 70-80 stores FY27
- 3 stores 1QFY27
- TP Rs 4,182
- TP Rs 4,700
- TP Rs 3,700
- TP Rs 4,800
- up 8% YTD
Why this matters
Slower organic store additions and moderating same-store growth strengthen the case to evaluate inorganic expansion or format diversification to defend the premium valuation and topline momentum.
What to watch
- Q2FY27 SSSG print vs 5.5% baseline
- Quarterly store-addition count against 70-80 FY27 guidance
- Gross/EBITDA margin trend amid competitive discounting
- Quick-commerce penetration metrics in metro markets
- Promoter/institutional holding changes and delivery-based buying
- Monitor peer quick-commerce grocery volume disclosures for share-shift evidence
- Track DMart Ready (e-commerce) contribution and margin trajectory in commentary
- Watch for brokerage TP revisions and any downgrade cascade post-conference call
- Assess FMCG staples demand signals as proxy for grocery discretionary spend