Neutral Avenue Supermarts Ltd For Target Rs. 5,310 By Motilal Oswal Financial Services
1QFY25 pre-quarter update
Revenue grew 18% YoY (in line) Revenue growth supported by high productivity and footprint adds
* Standalone revenue grew 18% YoY to INR137b (in line), driven by 5% growth in revenue/store and 13% YoY store addition.
* Revenue/store rose 5% YoY to INR1,490m (+7% YoY in 4QFY24).
* Revenue/sqft (calc) increased by ~4% YoY to INR35.9k. The gap between revenue/store and revenue/sqft stood at ~1%.
Recovery visible:
* Revenue/sqft has been growing for the last 4-5 quarters (4-6% YoY growth in each quarter).
* In the last three years, revenue/sqft remained subdued due to the addition of large-size stores and weak discretionary spending (revenue contribution 23-25%). This trend has been reversing gradually for the last 4-5 quarters, which is evident from the narrowing gap between revenue/store growth and revenue/sqft growth.
Store addition:
* The company added seven stores in 1QFY25, taking the total count to 371 stores
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SEBI Registration number is INH000000412
