DMart shares: What should investors do post Q4 results? Buy, sell or hold?

DMart share price: Shares of Avenue Supermarts Ltd (DMart) extended their losing streak for a second consecutive session on Tuesday, after the company declared its Q4 results on Saturday. The stock was trading 0.47% lower at Rs 4,353.55 apiece on the BSE in the afternoon, slipping from its previous close of Rs 4,374.15. 

DMart Q4 performance

Taking a quick look at the scorecard from the exchange filing, DMart reported a consolidated net profit of Rs 656.42 crore for the quarter, marking a jump from the Rs 550.79 crore reported in the corresponding quarter last year. 

Revenue from operations rose to Rs 17,683.86 crore from Rs 14,871.86 crore in the same period last year.  Despite the steady top-line and bottom-line growth, brokerages have initiated a mixed bag of recommendations.

What brokerages recommend?

Among the brokerages, Axis Direct maintained a 'Buy' rating on the stock and raised its target price to Rs 5,270 per share. 

“Looking ahead to FY27, DMart’s strategic emphasis on improving store productivity, enhancing profitability, and accelerating recovery in the General Merchandise & Apparel (GM&A) segment positions the company well for a gradual earnings recovery,” Axis said.

Taking a more guarded stance, PL Capital retained a 'Hold' rating with a target price of Rs 4,410 per share.  The brokerage said out that "EBITDA/PAT were beat on our estimates by 3.6%/5.4% led by lower cost of retail," but warned that operating metrics remained weak. 

JM Financial kept its 'Reduce' call intact with an unchanged target price of Rs 4,500. While the brokerage noted "Robust 4Q; store expansion spree flips net cash to net debt," it added “PAT growth was a miss largely on 22% YoY lower other income and spike in interest cost. This, we believe, is largely due to increase in debt to fund the accelerated store expansion plan (85 stores added in FY26, the highest ever).”