Neutral Avenue Supermarts Ltd For Target Rs. 4,100 - Motilal Oswal Financial Services
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2022/10/54441b313a51a09f029d5fa9ce863909.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
D-Mart 2QFY23 pre-quarter update
Revenue growth remains weak (10% lower on a LTL basis), adds eight stores in 2QFY23 (in line)
Revenue grew 36% YoY
* Standalone revenue grew 36% YoY to INR103.8b, 6.4% below our estimate. While overall revenue growth remained strong, calculated LTL growth in 2QFY23 was 2% YoY when adjusted for footprint addition. As compared to pre-COVID levels of 2QFY20, this was lower by 10% (the company doesn’t provide quarterly SSSG).
* Same store sales continue to post a decline: Blended revenue per sq. ft. grew 2% YoY to INR33,727. This was 10% lower as compared to preCOVID levels (2QFY20).
* Our channel checks indicate a soft performance in the Value segment, which may have hurt the ‘non-Staple’ category segment that constitutes 25-30% of the revenue pie. It has also increased its average store size to ~41.5k sq. ft. v/s 34.4k sq. ft. in FY20. The management previously indicated that a higher store size takes longer to reach a stable revenue per sq. ft. state.
Healthy store additions persist
* DMART continued its healthy store additions. It added eight stores (in line) in 2QFY23, taking its total count to 302. It has added 18 out of a total of 40 stores factored in FY23.
* We factor in 40 store additions, 19%/14% footprint/store additions in FY23. In the last three years, it saw a strong 60%/93% cumulative store/footprint additions, despite the COVID-led lockdown.
To Read Complete Report & Disclaimer Click Here
For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412
Above views are of the author and not of the website kindly read disclaimer
![](https://portfolio.investmentguruindia.com/uploads/news/insurance 123.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Axis Securities Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Wipro.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/2b1715f7e03b51b0ac9c014eb224fc1f.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/gdp22.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Geojit Financial Services.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Dollar retures 2.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/health22.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Arvind Kapil, MD and CEO, Poonawalla Fincorp.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/stock8.jpg)