Avenue Supermarts shares fall 3% after Q2 results. What are Motilal Oswal, Nuvama saying?
Avenue Supermarts moved lower in a quarterly results development for Q2FY27.
· Economic Times Markets, ET Stocks
Avenue Supermarts shares fell 3.3% despite an 8.5% year-on-year rise in Q2FY27 net profit to Rs 743 crore. Revenue grew 17.8%, but margins weakened. Motilal Oswal maintained a Neutral rating, while Nuvama retained Hold and cut its target price amid rising costs and profitability concerns.
Key facts
- Period
- Q2FY27
The analysis
Avenue Supermarts reported Rs 743 crore for Q2FY27, with movement of 3%, 3.3% and 8.5% attached to those lines. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is -3.5% on the day at ₹3,392.40, and has returned -13.8% over three months. It sits 27% below its 52-week high, which means a good deal of bad news was already in the price. The consumer & retail sector has moved -3.4% over the same period, so Avenue Supermarts is running 10.4 points behind its peers.
For Avenue Supermarts, the question is how much of this is already reflected in the price and how much re-rates the consumer & retail peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- The company directly in focus is DMART.
- Sector exposure: Consumer & Retail, Capital Markets.
- The immediate tone of coverage reads negative.
In this story
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