Avenue Supermarts Stocks Slide Amid Underwhelming Earnings

Avenue Supermarts Ltd, operating the D-Mart retail chain, saw a significant decline in stock prices following its quarterly earnings report. Despite a net profit increase of 5.78%, investor sentiment was not bolstered. The company's market capitalization dropped sharply, reflecting a disconnect between financial gains and market expectations.

Avenue Supermarts Ltd, the operator of the D-Mart retail chain, faced a significant drop in its stock value, seeing a decline of over 9% in early trading on Monday. This followed investor dissatisfaction with the company's earnings for the September quarter.

The company's shares plummeted by 9.46% to Rs 4,139.95 on the NSE and 9.37% to Rs 4,143.60 on the BSE. Consequently, its market capitalization fell by Rs 27,900.18 crore, reaching Rs 2,69,637.75 crore on the BSE.

Despite the company's report of a 5.78% increase in consolidated net profit to Rs 659.44 crore and a revenue rise of 14.41% to Rs 14,444.50 crore, investors appeared unimpressed. Promoted by Radhakishan Damani, D-Mart retails essential products across various Indian states, yet the results failed to meet market expectations.

(With inputs from agencies.)