Brokerages mixed on Avenue Supermarts post Q1 results; here's what they say

Jefferies maintains 'Hold' rating on the stock as the management is watchful of 'potential volume stress' in discretionary segments due to inflation

Better-than-expected results by Avenue Supermarts, the owner and operator of D-Mart chain of stores, triggered a 3.8-per cent rally in the shares of the company in the intra-day trade on Monday. The shares, eventually, closed at Rs 3,979 apiece on the BSE, up 0.94 per cent, as against a 0.16 per cent fall in the benchmark S&P BSE Sensex.

This comes even as most brokerages remained cautious on the stock on the back of higher inflation leading to downtrading by consumers. 

"D-Mart's anchor variable (footfalls/sales density) remains suboptimal vis-à-vis the pre-pandemic days (partly attributable to the step-up in store additions/size).