DMart, run by Avenue Supermarts ltd is on its way to normalcy faster than anticipated as the recent report shows their profit margin increasing by 10%. After the year being full of downturns and a decline in profit margins, the quarter 3 results mark a reversal of all the past results.
As the results for quarter 3 showed improvement for DMart, the stocks of the same reached an all-time high.
The shares of DMart touched 52 weeks high as there were high deals in the National Stock Exchange Board of India. As per the analysts, the 9.3% growth in the December quarter is as normal as it can get.
Moreover during the last two quarters even with sales being 20% more the growth was Amon thing to only 8.8% so a 10% growth is as normal as it can get explains analysts.
What helped the Avenue supermarts led DMart to increase its profits was the festive season which helped a lot in the growth. But now the investors should grow cautious as the season has passed along, the shares remain as expensive as they were.
The prices remain the same even with high raw material costs and inconsistent supplies by the FMCG sector.