Motilal Oswal Lifts DMart Target to Rs 4,800 After In-Line Q1, Sees ~18% Upside
Motilal Oswal retained its Buy on Avenue Supermarts and raised the target to Rs 4,800 from Rs 4,750 following in-line Q1 FY27 results. Growth deceleration to ~15% stokes quick-commerce share worries in metros, but tier-2 store economics stay strong. Brokerage models 18%/19%/16% revenue/Ebitda/PAT CAGR over FY26-29E.
What happened
Motilal Oswal raised DMart's target price to Rs 4,800, retaining Buy, after in-line Q1 FY27 results. Growth deceleration to ~15% raises quick-commerce
Key facts
- TP Rs 4,800 from Rs 4,750
- ~18% upside
- Q1 FY27 growth ~15%
- 85-90 annual store additions FY27-29
- revenue/Ebitda/PAT CAGR 18%/19%/16% FY26-29E
- ~40x Sep'28E EV/EBITDA
Why this matters
Slowing metro growth amid quick-commerce share loss strengthens the case for exploring a delivery or dark-store capability to defend urban demand.
What to watch
- Q2 FY27 SSSG print vs ~15% growth baseline
- Blinkit/Zepto/Instamart GMV and grocery mix disclosures
- New store count and gross margin trajectory
- Any management commentary on metro basket cannibalization
- Track peer brokerage TP revisions to confirm consensus drift toward Rs 4,800+
- Monitor DMart Ready/q-commerce delivery expansion cadence in metros
- Watch quarterly SSSG and revenue-per-sqft trend for deceleration confirmation
- Follow store addition pace in tier-2/3 as growth engine