DMart Splits Brokerages: Morgan Stanley, Bernstein Bullish (~Rs 5000) as Citi Cuts to Rs 3400 on Quick-Commerce Threat
Avenue Supermarts faces a divided Street as quick-commerce pressures metro same-store sales growth. MS (TP Rs 5083) and Bernstein (Rs 5000) stay overweight on 80+ store expansion, while Citi flags a Sell (TP cut to Rs 3400). CarTrade also lands a UBS Buy (TP Rs 4000).
What happened
Avenue Supermarts (DMart) · Brokerages issue fresh calls on DMart amid rising quick-commerce pressure on metro SSSG: MS/Bernstein bullish (TP ~Rs 5000-5083),
Key facts
- DMart TP Rs 5083 (MS OW)
- DMart TP Rs 5000 (Bernstein)
- DMart TP cut to Rs 3400 (Citi Sell)
- 80+ store expansion
- CarTrade TP Rs 4000 (UBS Buy)
Why this matters
The quick-commerce threat to metro sales strengthens the case for evaluating rapid-delivery capabilities or urban fulfillment partnerships to complement the store-led expansion model.
What to watch
- Next earnings SSSG print (below ~5% confirms bear case)
- Gross/EBITDA margin trajectory amid online push
- Blinkit/Zepto/Instamart city expansion and discounting intensity
- Additional brokerage TP revisions clustering high or low
- Any management commentary on quick-commerce competitive response
- Watch quarterly SSSG disclosure and metro vs non-metro split for q-comm impact evidence
- Track DMart Ready (online) investment cadence and margin drag commentary
- Monitor store addition run-rate vs the 80+ guidance for growth-offset credibility
- Screen quick-commerce players' GMV growth in DMart catchment cities