DMart Stock Slips After BSE Seeks Clarification, Despite Strong Q3 Update

On Monday, January 6, Avenue Supermarts, the parent company of retail chain DMart, saw its stock decline by nearly 2%. This drop came amid a weak market sentiment and after the Bombay Stock Exchange (BSE) sought clarification from the company regarding unusual volume movements in its shares.
DMart had posted a strong provisional update for Q3 FY25 on January 2, which initially sparked a 15% rally in the stock price on January 3. The company reported a 17.49% year-on-year growth in standalone revenue from operations, reaching ₹15,565.23 crore for the quarter, up from ₹13,247.33 crore in Q3 FY24. Additionally, DMart added 10 new stores during the quarter, increasing its total store count to 387 from 377 in the previous quarter. The stock surged 11.47% on January 3, closing at ₹4,025.20.
BSE Seeks Clarification
Following the sharp rise in DMart’s stock and the increase in trading volumes, the BSE requested a clarification from Avenue Supermarts regarding the movements. In response, the company assured that it has adhered to all necessary disclosure norms under SEBI regulations. Avenue Supermarts clarified that there was no material information that had not been disclosed, emphasizing that the volume movements were purely market-driven.
Stock Decline and Outlook
Following the clarification, DMart’s stock price corrected, dropping 1.84% to ₹3,948.85. Despite this decline, the stock has gained nearly 11% in January so far, reflecting strong investor sentiment driven by the positive business update. The company is set to announce its official Q3 FY25 financial results in a board meeting scheduled for January 11, 2025.
Upcoming Results
In a filing on January 5, Avenue Supermarts informed the market about the upcoming board meeting to consider and approve the unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2024.
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