Avenue Supermarts shares declined nearly 2% on Monday following the company's mixed third quarter update, with analysts expressing concerns over slowing revenue growth momentum and increasing competitive pressures. The DMart operator's performance highlighted broader challenges facing traditional retail amid rising quick commerce competition.

Financial Performance and Growth Concerns

Avenue Supermarts reported standalone revenue growth of 13% year-on-year for the December quarter, though the absolute figure showed a marginal decline from earlier estimates.

While the company maintained double-digit growth, revenue momentum continued to moderate, with analysts noting that realisations may have come under pressure due to recent GST cuts. The company added 10 stores during the quarter, bringing total additions to 27 stores in the current fiscal year.

Analyst Reactions and Market Sentiment

Brokerages remained divided on Avenue Supermarts' prospects, with mixed ratings reflecting uncertainty about the company's ability to navigate current challenges.

Citi maintained its 'Sell' rating, attributing the sharp moderation in growth to rising competitive intensity from quick commerce platforms, weak demand environment, and higher share of store additions in smaller towns. The brokerage highlighted that Avenue Supermarts has reported year-on-year EBITDA margin decline in 11 of the last 12 quarters.

Competitive Pressures and Operational Challenges

The retail chain faces mounting pressure from quick commerce platforms, which are impacting both pricing strategies and customer footfall. Morgan Stanley estimated implied same store sales growth for the quarter at flat to low single digits, indicating challenges in existing store performance.

The company's store additions over the past year stand at 14.20%, indicating steady network expansion even as growth trends soften.

Market Performance and Outlook

Avenue Supermarts shares traded 1.77% lower at ₹3,654, with the stock down close to 3% in early trading. Among 29 analysts tracking the company, eight have 'Buy' ratings, 12 recommend 'Hold', and nine maintain 'Sell' calls.

Investors will closely monitor the company's detailed third quarter results for insights into operating performance, changes in assortment mix, and management commentary on store expansion strategy amid evolving retail dynamics.

Two companies are set to reward shareholders with bonus shares this week, as Orient Technologies and Antariksh Industries prepare to distribute additional equity to their stakeholders. Both companies have announced their first-ever bonus issues in identical 1:10 ratios, marking significant milestones for their respective shareholders.

Investors must pay careful attention to the record dates to ensure eligibility for these bonus allotments. Under India's T+1 settlement cycle, shares must be purchased at least one trading day before the record date, as purchases made on the record date itself will not reflect in demat accounts in time for eligibility.

Orient Technologies Bonus Issue

Orient Technologies Ltd leads the week's bonus activity with its record date scheduled for January 5. The company's board has recommended issuing bonus shares in a 1:10 ratio, subject to shareholder approval.

Shareholders holding shares in their demat accounts as of the record date will receive one new fully paid-up equity share for every 10 existing shares they hold.

Antariksh Industries Bonus Announcement

Antariksh Industries follows closely with its bonus issue record date set for January 9. The company has also recommended a 1:10 bonus share ratio, matching Orient Technologies' offering structure.

This marks Antariksh Industries' inaugural bonus issue, representing a significant corporate action for the company's shareholders. The identical ratio structure provides shareholders with the same proportional benefit as Orient Technologies.

Key Investment Considerations

Both bonus issues represent the companies' first such distributions to shareholders, indicating management confidence in their respective business prospects. The 1:10 ratio means shareholders will see their shareholding increase by 10% through these bonus allotments.

Investors interested in participating must ensure their share purchases settle before the respective record dates. The staggered timing of January 5 and January 9 provides opportunities for strategic positioning across both companies during the week.