Anil Singhvi recommends SIP for this Radhakishan Damani subsidiary: Check the basis and target price
After the Q3 business review, shares of DMart’s owner, Avenue Supermarts, traded firm with gains of over 14 percent or Rs 526 at Rs 4,143.75 per share on the BSE. The stock earlier in the day hit a 10 percent higher circuit and then came close to marking the day’s high of Rs 4,165.
On Thursday, mixed retail player DMart released its business update for the quarter ended December 2024. For the third quarter, the company’s net income from operations stood at Rs 15,565.23 crores. The same for the December quarter last year was Rs 13,247.33. Also, the company’s total store count as of the December quarter was reported to be 387.
So, can you buy shares of Avenue Supermart after strong gains in Friday’s session? Here’s what Zee Business Managing Editor Anil Singhvi does with the stock
Anil Singhvi suggested ‘buy’ on the scrip with targets indicated at Rs 4,200, Rs 4,500 and Rs 5,000- implying potential gains of over 38 percent from the last session.
The investment horizon of the suggested scrip is one to three years.
Reason to invest in DMart
Anil Singhvi believes that Damani has a strong record of murder. Moreover, he expects good growth from price sensitive markets like UP and Bihar. Furthermore, regarding the threat from commercial players (QC), the market guru added that currently DMart is facing little competition from the likes of Blinkit and Instamart.
In addition, DMart Ready-the company’s online grocery shopping service from supermarket giant DMart is also doing better now.
The expert believes that DMart’s profitability will remain on the higher side compared to other QC competitors.
Taking all this into consideration, Singhvi suggested Systematic Investment or SIP in DMart every 10 percent fall.
He added that 17-18 percent growth in various retail players would be considered strong at the current rate. Also, the opportunity to enter the script may be available once the next quarter’s results are out.
