PL Capital stays cautious on DMart, flags rich valuation and quick-commerce pressure; target Rs 4,103
PL Capital maintains 'Hold' with negative bias on Avenue Supermarts, citing 73.1x FY28E EPS valuation, deteriorating store metrics (sales/store -3.7%, bills/store/day -5.1%), quick-commerce eroding metro stores, and DMart Ready exiting 14 cities. Sees ~75 store adds in FY27/FY28 but pressured EBITDA margins of 7.0-7.4%.
PL Capital maintains 'Hold' on DMart with negative bias citing rich valuations, quick-commerce competition denting metro stores, deteriorating store metrics, and DMart Ready exiting 14 cities. Target price Rs 4,103; expects elevated store additions and pressured margins.