Shares of Avenue Supermarts
slumped ~8% in early morning trade on Monday. Share prices were in the red after the retail giant posted its Q3FY19 results on Saturday.
Avenue Supermarts Ltd’s revenue in Q3FY19 grew 33.1% yoy and 11.9% qoq to Rs5,451cr. EBITDA came in at Rs453cr, up 7.5% yoy and 16.3% qoq. The EBITDA margin, however, contracted 198bps yoy and 32bps qoq to 8.32%.
The dip in margins was expected on account of heavy discount offerings to support revenue growth. However, the higher-than-expected decline in margins may have been on account of longer operating hours in certain stores, particularly during the festive season. Read more.
The stock currently trades at ~78x its FY20E EPS.
Avenue Supermarts Ltd is currently trading at Rs1,449.50 down by Rs119.45 or 7.61% from its previous closing of Rs1,568.95 on the BSE.
The scrip opened at Rs1,454.70 and has touched a high and low of Rs1,474.20 and Rs1,423.40 respectively. So far 16,17,065 (NSE+BSE) shares were traded on the counter.