DMart Shares Drop 9% Following Downgrades on Disappointing Q2 Results

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DMart’s parent company, Avenue Supermarts, saw a sharp 9.3% decline in shares, falling to Rs 4,143.60 on the BSE.

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Despite an 8% YoY profit rise, DMart reported a 12% QoQ decline in profit after tax, disappointing investors.

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Total Q2 revenue stood at Rs 14,050.32 crore, a 14% increase, but fell short of market expectations.

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DMart faces tough competition from quick commerce platforms offering rapid delivery, impacting growth.

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Morgan Stanley downgraded DMart to Underweight, cutting its target price from Rs 5,769 to Rs 3,702.

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Other brokerages like Nuvama and JPMorgan also downgraded DMart, highlighting competition and rising costs.

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Investors are advised to monitor DMart’s response to competition and cost management in upcoming quarters.

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DMart’s future growth hinges on effective competition against online platforms and managing rising expenses.

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