Mutual Funds

Avenue Supermarts down nearly 3%; Citi maintains sell with target Rs 1,255

According to Citi, DMart’s e-commerce still miniscule and investments could continue. It has maintained sell call with a target of Rs 1,255.

Share price of Avenue Supermarts was down nearly 3 percent intraday Friday as Citi has maintained sell call on the stock post analyst meet which held on June 14, 2018.

According to research house, the management not concerned about slowing SSS or average bill sizes. Also, they doesn’t expect upside to margins from current levels as they will pass on benefits to the consumers.

The company is going to focus on store ownership model which will benefit in long-term. The company management is not worried about the competition and believes that there is large consumption opportunity.

According to Citi, DMart’s e-commerce still miniscule and investments could continue. It has maintained sell call with a target of Rs 1,255.

JPMorgan has maintained underweight rating on Avenue Supermarts with a price target of Rs 1,050.

The company’s focus to remain on competitive pricing, sharper product assortment, store additions and on fine tuning the e-commerce model, JP Morgan said post the analyst meet.

The company has no plans for a loyalty program, unlike peers, it said.

HSBC has increased the target price of Avenue Supermarts to Rs 1,850 from Rs 1,600.

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