Business

Here's why DMart shares crashed by 9% today

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DMart shares

DMart's parent company, Avenue Supermarts, saw its shares fall 9.3% in early trade on Monday, reaching a low of Rs 4,143.60 on the Bombay Stock Exchange (BSE). 

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DMart shares

The stock fell sharply as multiple brokerage companies downgraded it, dropping its target price to as low as Rs 3,702. 

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DMart shares

DMart's second-quarter earnings did not match market forecasts and DMart reported an 8% year-on-year increase in profits.

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DMart shares

The figures were disappointing because profit after tax (the money left over after all expenses) declined by more than 12% compared to the previous quarter.

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DMart shares

The company's overall sales for the second quarter were Rs 14,050.32 crore, up 14% from Rs 12,307.72 crore the previous year. 

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DMart shares

However, this did not please investors and experts who expected higher results.

Image credits: freepik

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