Shares of Avenue Supermarts Ltd, which owns and runs popular retail store chain DMart, have been among the more resilient ones in the past two months.
Until last Friday, the company’s shares had fallen only about 7% from its all-time highs in mid-February. In that backdrop, the company’s announcement that nearly 50% of its stores are closed came as a nasty surprise for D-Street.
Avenue falls in the category of stocks that are allowed to move only by a maximum of 5% each day. On Monday, the stock touched its lower circuit, falling 5%, on a day when the Nifty 50 index dropped 1%.
At the end of the December quarter, Avenue Supermarts had 196 stores. “Earnings estimates should see sharp cuts post this announcement," said an analyst, requesting
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