Stock
DMart Shares Surge Over 7% — What’s Driving the Rally?
Shares of Avenue Supermarts (the parent company of DMart) surged by over 7% to a high of ₹4,299 on Wednesday. The rally was fueled by positive investor sentiment following the company's announcement of a new store opening and its future expansion plans.
Key Reasons for the Surge:
New Store Opening: The immediate trigger was the company’s announcement of a new store opening in Pathankot, Punjab. This brings DMart’s total store count to 426.
Accelerated Expansion Plans: The company signaled its intention to speed up future store additions, which provided investors with strong visibility on its growth trajectory.
Improved Investor Confidence: The news reassured investors that DMart’s traditional, large-format retail model remains robust and can effectively compete against the disruption from quick commerce companies. This boosted confidence despite ongoing challenges like margin pressures.
