Retail
Brokerage backs Avenue Supermarts’ low-cost model against quick-commerce discounting, giving merchants a clear read on value retail resilience.
Meera Iyer, Retail correspondent··4 min read
On 27 August CLSA assigned Avenue Supermarts a high-conviction Outperform rating with a target of ₹5,723, implying 46.4 per cent upside. The note highlighted DMart’s discount edge and cost discipline even as quick-commerce players intensify price wars.
CLSA contrasted DMart’s everyday low-price structure with the promotional intensity of Blinkit, Zepto and Instamart. The retailer continues to expand its store base while keeping operating costs tight.
For the kirana and the DMart till the rating underscores that bulk private-label and staples still win on landed cost. Shoppers chasing deep qcomm deals on cosmetics or snacks still return for the monthly grocery run where DMart undercuts.
DMart’s low-cost edge remains the strongest defence against quick-commerce discounting.
The call helps organised value retail versus pure-play qcomm burn and pressures weaker regional chains that cannot match either density or cost. It also supports private-label suppliers tied to DMart’s volumes.
Next watch is the festive footfall print and any further debt or capex filing. Margin defence in the December quarter will test the thesis.
Filed under Retail·Meera Iyer
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