Avenue Supermarts share price falls as quarterly profits shrinks

The Markets Today in a nutshell

• Domestic stock market ended on a negative note.
• PSU banks and IT edged higher, while metals and autos tumbled. Investors are taking a cautious stance as FIIs continue to be sellers in domestic equities in the current month.
• India’s annual wholesale price index (WPI) inflation for the month of December 2022 eased to 4.95%, at a 22-month low, mainly due to fall in prices of food articles and crude petroleum. The Wholesale Price Index (WPI)-based inflation was 5.85% in November 2022 and 14.27% in December 2021.

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? Avenue Supermarts share price falls as quarterly profits shrinks
The company reported that quarterly core profit margins shrunk due to weak demand. Earnings before interest, taxes, depreciation and amortization (EBITDA) margins fell to 8.34 percent in the third quarter from 9.39 percent a year earlier. It said the decline mainly reflected a change in product mix and weaker-than-expected discretionary non-FMCG sales.

? Varun Beverages share price up as foreign brokerage maintains buy rating
Jefferies retained the ‘buy’ rating on the stock. The global research firm has maintained its ‘buy’ call on the stock with a target of Rs 1,540 per share, an upside of over 28 percent from the current market price. According to the research firm, the stock is down 20 percent from the recent peak and trades at 40x CY23E P/E. It expects the company to enjoy industry-leading growth in revenue and earnings.

? Just Dial share price hits upper circuit as consolidated profit rise 288% y-o-y for Q3FY23
The firm reported a 288.4% year-on-year increase in consolidated profit at Rs 75.32 crore for the quarter December FY23, driven by strong operating performance and topline. Revenue from operations grew by 39 percent to Rs 221.4 crore for the quarter YoY. For the nine months ended December FY23, profit grew by 62.2 percent YoY to Rs 79.1 crore and revenue increased by 27.5 percent to Rs 612.2 crore compared to the year-ago period.

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