Avenue Supermarts Shares Soar 5.5% on Ambitious Expansion Plans
Avenue Supermarts, D-Mart's parent company, saw a 5.5% increase in share price following the announcement of ambitious store expansion plans. The company aims to double its store count and investments, focusing on Northern India. Neville Noronha will lead the real estate expansion efforts. Recent store openings in Pathankot and Pune have brought the total store count to 426. Despite a 16% revenue growth in the June quarter, margins narrowed by 80 basis points due to deflation in certain product categories. The stock has gained 20% recently, reflecting investor optimism about the company's growth strategy.

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Avenue Supermarts , the parent company of D-Mart, saw its shares surge 5.5% following management's announcement of aggressive store expansion plans during a recent analyst meet. The company's stock performance reflects investor enthusiasm for its growth strategy, particularly its focus on increasing its presence in Northern India.
Expansion Strategy
Avenue Supermarts has revealed plans to significantly accelerate its store expansion efforts. The company intends to:
- Double down on increasing its store count
- More than double its investments for expansion
- Focus particularly on Northern India
Neville Noronha, a key figure in the company, will be leading the real estate expansion efforts, signaling the company's commitment to this growth strategy.
Recent Store Openings
The company's expansion plans are already in motion. Avenue Supermarts recently opened new stores in:
- Pathankot, Punjab
- Pune, Maharashtra
With these new additions, the company's total store count has reached 426, as confirmed in their latest regulatory filing.
Financial Performance
While the company is focusing on expansion, its recent financial performance has shown mixed results:
- For the June quarter, Avenue Supermarts reported a 16% growth in revenue
- However, margins narrowed by 80 basis points
- The company cited deflation in staples and non-food products as impacting revenue by 100-150 basis points
Stock Performance
The market has responded positively to Avenue Supermarts' expansion strategy and overall performance:
- The stock has gained 20% recently
- The recent 5.5% jump in share price followed the announcement of the expansion plans
Investors appear to be optimistic about the company's growth prospects, particularly its focus on increasing its store footprint across India. The aggressive expansion strategy, especially in Northern India, suggests that Avenue Supermarts is positioning itself for long-term growth in the retail sector.
As the company continues to execute its expansion plans, market observers will likely keep a close eye on how these investments translate into revenue growth and market share in the coming quarters.
Historical Stock Returns for Avenue Supermarts DMart
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.33% | +6.13% | -2.40% | +16.45% | -13.54% | +106.81% |