DMart Shares Dip: Goldman Sachs Warns of Downgrades, High Valuation Amid Competition

• Avenue Supermarts (DMart) shares fell after mixed brokerage commentary, with Goldman Sachs maintaining a 'Sell' rating.
• Goldman Sachs predicts continued earnings downgrades, citing slower-than-expected store additions and intensifying quick commerce competition.
• The brokerage highlighted DMart's elevated valuation at 75 times its expected FY27 earnings and cut EPS estimates for FY26-FY28.
• In contrast, CLSA reiterated a 'High Conviction Outperform' rating, projecting strong free cash flow post-expansion and a robust business model.
• Analyst sentiment is mixed, with 8 'Buy', 12 'Hold', and 9 'Sell' recommendations among 29 analysts tracking the stock.

Why It Matters: DMart faces earnings downgrade warnings and valuation concerns despite some bullish long-term views.