Radhakishan Damani’s DMart shares hit 6-month low. Time for bottom-finishing?

According to stock market experts, DMart Q3FY23 results have come below market estimates and hence sell off triggered immediately after the market’s opening today. They said that DMart shares have immediate support placed at ₹3,500 whereas ₹3,250 to ₹3,300 levels would be a good accumulation zone for bottom finishers. They said that stock may bounce back strongly after the sell off and may fo up to ₹4,000 apiece levels in near term. They advised DMart shareholders to keep on accumulating after every big dip till the stock is trading above ₹3,200 apiece levels.

Speaking on the reason for slump in Avenue Supermarts share price, Ravi Singhal, CEO at GCL Securities said, “Radhakishan Damani’s Avenue Supermarts share price has been under pressure as its Q3 results have come below market expectations, especially on the margin front. Hence, the stock is under sell off heat since early morning deals on Monday. However, high risk traders can buy around ₹3600 for near term target of ₹3,800 apiece levels maintaining stop loss at ₹3,500 levels.”

However, Manoj Dalmia, Founder and Director at Proficient Equities said that long term investors can hold the stock and keep on accumulating till the stock is trading above ₹3,200 apiece levels. He advised shareholders of DMart shares to keep adding as the stock may double their money in long term and hit ₹6,000 apiece levels in 18 to 24 months time.”

Click here to read latest stock market news

For fresh buying Manoj Dalmia said, “Those want to play safe, they are advised to buy DMart shares in ₹3,250 to ₹3,300 range for two years target of ₹6,000 levels. However, one must maintain stop loss at ₹3,200 while taking fresh position in the scrip.”

DMart Q3 results 2023

In Q3FY23 results, Avenue Supermarts reported 6.70 per cent jump in consolidated profit after tax (PAT) at ₹589.68 crore against ₹552.56 crore in the corresponding period. Radhakishan Damani-owned Avenue Supermarts, which runs DMart chain, reported 25 per cent rise in revenue from operations to ₹11,569.05 in Q3FY23 against ₹9,217.76 in the corresponding quarter in previous financial year.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.