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Listen to this article in summarized format The stock closed at ₹3,555 after posting its sharpest one-day drop since October 14, 2024. Citi retained its target price of ₹3,300, while Goldman Sachs' target was ₹3,800. Citi said it remained cautious on Avenue Supermarts because of its expensive valuation, at 61 times estimated FY28 earnings, and risks to same-store growth and earnings from increasing competition in quick commerce. "Sustained accelerated store expansion and improved throughput will be key to support valuation multiples," Citi said. It is now down around 6% so far this year. The benchmark Sensex and Nifty have gained 0.6% each. Read more: Sebi to partly reverse derivative settlement rules after pushback: Report Avenue posted standalone revenue growth of 18.4% YoY in the second quarter of FY27, accelerating from 15.1% in the first quarter. Avenue added 15 stores in the second quarter, taking additions in the H1 of FY27 to 18, compared with 17 in the year-earlier period. Read more: PTC shares soar nearly 34% after Schneider Electric agrees to $22.6 billion buyout Goldman Sachs said its 'sell' thesis is based on a mismatch between Avenue's growth prospects and valuation. It expects revenue growth to moderate to below 20% going forward, compared with around 30% earlier, as rising competition from quick-commerce platforms such as Blinkit and Swiggy, as well as larger retailers such as Reliance, weighs on same-store sales growth. "We expect the competitive intensity to continue to rise in large cities, and thus put pressure on Avenue's same-store sales growth," Goldman Sachs said in its latest report. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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