Analyst Estimates: Here's What Brokers Think Of Avenue Supermarts Limited (NSE:DMART) After Its Full-Year Report

Investors in Avenue Supermarts Limited (NSE:DMART) had a good week, as its shares rose 2.9% to close at ₹4,612 following the release of its annual results. Revenues of ₹508b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹38.93, missing estimates by 3.6%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Avenue Supermarts

Taking into account the latest results, the consensus forecast from Avenue Supermarts' 16 analysts is for revenues of ₹614.0b in 2025. This reflects a huge 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 29% to ₹50.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹613.0b and earnings per share (EPS) of ₹51.66 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹4,417, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Avenue Supermarts, with the most bullish analyst valuing it at ₹5,535 and the most bearish at ₹3,200 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Avenue Supermarts'historical trends, as the 21% annualised revenue growth to the end of 2025 is roughly in line with the 20% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.9% per year. So although Avenue Supermarts is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Avenue Supermarts. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹4,417, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Avenue Supermarts. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Avenue Supermarts going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Avenue Supermarts .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.