Avenue Supermarts shares get an upgrade after strong Q4 update; check new price target

Shares of Avenue Supermarts Ltd., which operates the DMart chain, will be in focus on Monday, April 6, after the company reported a strong fourth-quarter business update.

The retailer posted Q4 revenue of ₹17,204.5 crore, marking an 18.9% increase from ₹14,462.39 crore a year ago, broadly in line with its 2–3 year revenue CAGR of 17-18%.

Store expansion remained aggressive, with 58 additions during the quarter and 85 stores added in FY26, taking the total network to 500 outlets.

ALSO READ | 3 PSU banks that should be on your radar after Q4 biz updates

Brokerages remain positive on the stock. CLSA has maintained a 'high conviction outperform' rating with a price target of ₹6,583.

CPI inflation for the quarter, based on January and February data, stood at around 3%, compared to 0.6% in Q3, with March trends indicating further firming up of prices.

Morgan Stanley has upgraded the stock to 'overweight' and raised its price target to ₹5,188, citing stronger-than-expected revenue growth of about 19%, ahead of its estimates and recent trends.

The brokerage believes DMart stands to benefit from higher inflation, which typically supports same-store sales growth and reinforces its value-driven positioning.

With faster network expansion and favourable external tailwinds, analysts expect revenue growth to improve to 19-20% over FY27-FY28, compared to around 16% estimated for FY26.

Shares of Avenue Supermarts ended 1.45% higher at ₹4,333 in the previous session and have gained over 19% in the last six trading days.