InvestorQ : Why did Avenue Supermarts shares correct sharply on 26 May?
swati Bakhda made post

Why did Avenue Supermarts shares correct sharply on 26 May?

Answer
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Dia Deshpande answered.
5 months ago


Avenue Supermarts fell by 5% on Tuesday as investors were concerned after the company reported a 45% decline in its April sales because of the lockdown. The stock has already rallied 76% this year. Avenue Supermarts owns and operates D-Mart stores. Revenues for April were down 45% compared to April 2019 but this was more of a special case. After the easing of certain lockdown, Avenue has seen some improvement as it could open and operate more stores. Even the supply chain has improved so the concerns should be temporary for the next one or two quarters only. It could also benefit from vengeance buying once lockdown ends.