Avenue Supermarts: Rich valuations mean little room to miss expectations

Richly priced stocks usually also come with high investor expectations. So, even a marginal miss on expectations could lead to a sharp correction in valuation of such stocks. Investors of Avenue Supermarts (Avenue) – owner of DMart supermarket chain – should keep this in mind, suggest analysts. “The Avenue stock continues to enjoy rich valuations. However, disappointment on any front, including growth expectations, could lead to a sharp correction in the valuations,” says Rajeev Anand, analyst at Narnolia Financial Advisors. The stock currently trades at 65 .....

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