On Thursday, Avenue Supermarts shares fell 2% in the early trade even after the company’s March quarter standalone operational revenue resulted at Rs 10,337.12 crore, up 20% from Rs 8,606 crore in the year-ago period.
In the March ending quarter, Avenue Supermarts posted revenue of Rs 7,303.13 crore and Rs 6,193.53 crore, respectively.

However, Research firm Citi has kept a sell rating on the stock, having a target of Rs 3,460 a share. The average revenue per store was only +2.3% 3-year CAGR, while the average revenue per square feet was further unsatisfactory at -3% 3-year CAGR.

The broking company stayed cautious at existing valuations, given the risk around margin and earnings. As of March 2023, the company holds 324 stores across the country. Morgan Stanley has preserved an “equal-weight” rating on the stock, having a target of Rs 3,853 per share.

As per the media report, revenue plunged by 19.7% on a four-year CAGR basis.

At 9.18 am, Avenue Supermarts was trading at Rs 3,594.65, down Rs 59.50, or 1.63%, on the Bombay Stock Exchange.

The share touched a 52-week high of Rs 4,606 on September 2, 2022, whereas a 52-week low of Rs 3,185.10 on May 16, 2022. It traded 21.96% below its 52-week high and 12.86% above its 52-week low.