• Source:JND
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DMart Share Price:  Shares of DMart operator Avenue Supermarts Ltd fell more than 8% to trade at Rs 4,200 per share. The company's reported net profit for the second quarter of July-September 2024 rose 5.78 per cent to Rs 659.44 crore on Saturday, the minimal growth in earnings in the second quarter triggered the selling pressure on the stock.

Dmart Q2 Results (Why are Dmart shares falling?)

The company's adjusted net profit rose 5.78 per cent to Rs 659.44 crore in the July-September second quarter. Avenue Supermarts had posted a net profit of Rs 623.35 crore in the same quarter last year.

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The company's revenue from operations grew 14.41 per cent to Rs 14,444.50 crore in the quarter under review. The company's revenue from operations stood at Rs 12,624.37 crore in the corresponding quarter of the previous financial year.

Avenue Supermarts' total expenses rose 14.94 per cent to Rs 13,574.83 crore in the September quarter. The company's total income, including other income, increased 14.34 per cent to Rs 14,478.02 crore.

Another reason for DMart’s stock falling today is the rating from global brokerage firm JPMorgan. The brokerage firm downgraded its rating from overweight to neutral and cut the target price from Rs 5,400 to Rs 4,700. They noted that DMart is facing rising costs and competition from online grocery platforms, which has hurt its performance, especially in big cities. It has also been hurt by slower growth at its existing stores.

D-Mart opened six new stores during the quarter, taking the total number to 377 by September 30, 2024.

Dmart is promoted by Radhakishan Damani and his family and sells personal and household products across multiple markets including Maharashtra, Gujarat, NCR, Andhra Pradesh, Telangana, Karnataka, Chhattisgarh, Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab and Daman.

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Disclaimer: This is a piece of news about the recent performance of shares. Jagran does not advise investing, please take expert opinion before investing.