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ICICI Direct: Avenue Supermarts - Essentials Back On Growth Trajectory; Discretionary Gaining Gradual Traction   

ICICI Direct: Avenue Supermarts - Essentials Back On Growth Trajectory; Discretionary Gaining Gradual Traction 

A pedestrian walks past a D-Mart supermarket operated by Avenue Supermarts Ltd. (Photographer: Dhiraj Singh/Bloomberg)
A pedestrian walks past a D-Mart supermarket operated by Avenue Supermarts Ltd. (Photographer: Dhiraj Singh/Bloomberg)

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ICICI Direct Report

Avenue Supermarts Ltd.’s results were a mixed bag with lower-than-expected revenue performance but a beat on Ebitda for Q2 FY21.

Nonetheless, the management’s commentary had a positive bias with the scenario matching normalcy levels.

Despite 95% of stores resuming operations, stringent measures by local authorities had an impact on working hours.

By August, most stores started operating at pre-Covid-19 operating hours.

Withstanding challenges, D-Mart’s core ‘Food and FMCG’ segment (currently approximately 77% of sales) has reverted to the growth path with positive trajectory seen across all stores in September.

Discretionary categories (general merchandise and apparels) are currently laggards owing to subdued demand but are gradually picking pace.

Click on the attachment to read the full report:

ICICI Direct Avenue Supermarts Company Update.pdf

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