JEFFERIES ON AVENUE SUPERMARTS ; HOLD | TP ₹4,000 | EARLIER TP ₹4,500

• Q2 margins were a major disappointment. • Strong traffic, higher inflation and one of the best LFL growth prints in recent quarters. • Demand remained healthy, but profitability disappointed. • Higher food mix, weaker gross margins, wage inflation and inventory build weighed on earnings and operating cash flow. • Store expansion remained modest, while productivity softened with Q2 unit EBITDA at a multi-quarter low. • EPS estimates cut by 2–3%.

AVENUE SUPERMARTS LIMITED

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