DMart shares down 3% after Q1 profit miss, Macquarie sets lowest target price

The margin pressures have triggered a bag of mixed reactions from leading brokerages, post which the stock depreciated over 3 per cent in early trade on Monday.

Motilal Oswal reiterated buy at a revised target price of ₹4,500. We believe DMart’s value-focused model and superior store economics would ensure its competitiveness and customer relevance over the long term, despite QC’s convenience-focused model. However, rising competition on pricing could continue to weigh on growth and margins in the near term,” it said.

Nuvama Institutional Equities estimated that pressure in margins shall continue, given the competitive trends. Nuvama trimmed PAT estimates for FY26 by 6 per cent and for FY27 by 8 per cent. Maintaining hold, the brokerage lowered the target price on the stock from ₹4,273 to ₹4,086 per share.

HDFC Securities analysts observed that DMart continues to navigate a challenging competitive landscape. Store addition pace and margin improvement will be the key monitorables. They brokerage maintained add rating at ₹4,000 target price per share.

JPMorgan maintained neutral stance at ₹4,150. “Like-for-like (LFL) growth of 7 per cent and increased expansion reflect intent, but margin softness is likely to persist near-term,” it said.

Morgan Stanley assigned underweight rating at a target price of ₹3,350, noting that the Q1 performance was weak on both topline and margins, and added that the company’s continued investments to counter competition are likely to weigh on the business.  

HSBC has retained a reduce rating at ₹3,600. It flagged that EBITDA and margin performance in Q1 were slightly below an already-muted consensus.

Macquarie has an underperform rating with the lowest street target price of ₹3,100.

DMart stock traded 1.16 per cent lower at ₹4,016.90 as at 2.40 pm, hitting an intraday low of ₹3928.85. The stock opened at ₹4,090 on the BSE against the previous close of ₹4,063.90.

Published on July 14, 2025