DMart shares tumble 5% as brokerages slash target prices. What should investors do now?

Shares of DMart fell by up to 5% after the company’s Q4 EBITDA and margins fell short of expectations. Despite an increase in consolidated PAT by 8%, YoY revenue increased by only 21% due to a decline in gross margins to 13.4%, YoY and QoQ. This was due to the inferior mix of products. Brokerages have reduced their target prices on the stock. Prabhudas Lilladher remains optimistic with a Buy rating and target price of Rs 4,447, citing DMart’s potential to expand their store count and D’Mart Ready.