CLSA has lowered its price target for Avenue Supermarts (NSE: DMART) from INR 6,300 to INR 6,105, while retaining its High-Conviction Outperform rating on the stock.
The adjustment follows the company’s Q3 FY26 standalone revenue report of Rs 176,126 million, which fell 1.6% below CLSA’s estimate. Avenue Supermarts posted 13.2% year-on-year sales growth, marking the slowest growth in non-COVID impacted quarters.
CLSA attributed the slowdown to new stores opening in smaller towns and food price deflation. During the quarter, Avenue Supermarts added 10 new stores, fewer than the expected 14, bringing the total store count to 442 by the end of Q3 FY26.
Following the results, CLSA revised its earnings per share (EPS) estimates for FY26–FY28 down by 1–3%, citing slower expansion and softer sales. CLSA, though it has cut its price target, continues to trust in the company’s long-term potential and keeps its optimistic rating.
Besides, Avenue Supermarts, which operates under the DMart brand in the Indian retail supermarket and hypermarket segment, is a major player that concentrates on value retailing and employs a very effective cost management strategy.
Therefore, it is recommended that investors interested in the valuation aspect make use of the Fair Value calculators and industry models to determine if AVEU is a potential buying opportunity.
