Why Avenue Supermarts Shares Surged 8% Today? DMart Stock Among Top Gainers on July 30

Avenue Supermarts, the parent company of DMart, saw a sharp surge in its stock price on Wednesday, July 30. DMart shares jumped nearly 8%, hitting an intraday high of Rs. 4,324 apiece during the session before closing at Rs. 4,270.

Why Are DMart Shares Rising Today?

The rally in Avenue Supermarts share price was triggered by the management's announcement to accelerate store additions. During its Q1 FY26 investor call, the company confirmed that it had already added 50 stores in FY25, exceeding analysts' estimates and outperforming previous years (41 stores in FY24 and 40 in FY23). This brought back investor confidence in DMart's long-term growth strategy, especially in the face of rising competition from quick-commerce players like Blinkit and Zepto.

The management also addressed concerns related to quick-commerce competition, stating that it does not expect significant financial impact on its operations. DMart continues to leverage its strengths in pricing and store efficiency while expanding into private-label categories beyond bulk grocery, including biscuits, candies, detergents, soaps, and personal care items.

DMart Share Price Performance

As of July 30, Avenue Supermarts shares closed at Rs. 4,270.50, up Rs. 271.50, or 6.79%, for the day. However, on a monthly basis, the stock remains down by 2.34%. Over the past six months, DMart shares have declined by 19.43%, though they have delivered a 27.81% gain from their 52-week low. On a YTD basis, the stock is up 19.91%.

DMart Q1 FY26 Results

Earlier this month, Avenue Supermarts reported a net profit of Rs. 773 crore in Q1 FY26, almost flat compared to Rs. 774 crore in the same quarter last year. Revenue jumped 16.3% year-on-year to Rs. 16,359.7 crore, while EBITDA grew 6.4% to Rs. 1,299 crore. However, EBITDA margins declined to 7.94% from 8.68% last year.

Analysts Recommendations: Buy or Hold?

Axis Securities has maintained a BUY rating with a target price of Rs. 4,810, implying an 18% upside from current levels. They expect 19% CAGR for revenue, EBITDA, and PAT over FY24-27.

Centrum Broking has given a REDUCE rating, citing margin pressures and competitive risks. The firm has set a target price of Rs. 4,035, factoring in risks related to real estate costs and availability.

Antique Stock Broking has maintained a HOLD rating with a revised target price of Rs. 3,980, based on a 40x EV/EBITDA for FY27. While they revised their revenue estimates upward due to expected store expansion, they flagged concerns over elevated operating costs.

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