ICICI Securities Recommends 'Hold' on Avenue Supermarts, Sets Target at Rs 4000

• Avenue Supermarts (DMart) prioritizes stability over aggressive growth, showing execution discipline and cost control.
• EBITDA margin positively surprised at 8.4% despite an unfavorable mix, indicating strong operational management.
• Growth momentum is capped, with L2L moderating to 5.6% in Q3FY26, and store productivity remains below pre-Covid levels.
• Staples-led mix and DMart ReADY expansion provide earnings visibility but limit ticket expansion and operating leverage.
• ICICI Securities maintains a 'Hold' rating with a revised DCF-based target price of INR 4,000, down from INR 4,400.

Why It Matters: ICICI Securities advises 'Hold' on Avenue Supermarts, citing stable but not sharp growth, with a target of Rs 4000.