Avenue Supermarts Q2 profit misses, support at Rs 3,340

Avenue Supermarts Q2 FY27 profit rose 7.6% to Rs 804 crore, below estimates, with support at Rs 3,340 and resistance at Rs 3,670. Avenue Supermarts Limited [

] reported Q2 FY27 results after the market close on 9 October, and profit missed estimates. Standalone net profit rose 7.6% to Rs 804 crore, below the Bloomberg estimate of Rs 879 crore. Revenue from operations rose 18.4% to Rs 19,206 crore from Rs 16,219 crore. EBITDA grew 14.1% to Rs 1,403 crore, also below the Rs 1,468 crore estimate. The company added 15 stores in the quarter and ended with 518. The 3 October revenue update, up 4.7% from Rs 18,343 crore in Q1, had already pushed the stock down about 6% on 5 October. Wage inflation is weighing on margins. The trend is bearish. Price has traded in lower highs and lower lows since the April high near Rs 4,645, and trades near Rs 3,517, below the earlier 52-week low of Rs 3,529. RSI is 33.28, near oversold, below its average of 44.08. Support is Rs 3,340. Resistance is Rs 3,670. A close above Rs 3,670 would be the first sign of a bounce. A close below Rs 3,340 would extend the fall. Disclaimer: I do not hold any position in this stock. This is not a recommendation to buy or sell. Investments in securities markets are subject to market risks. Read all related documents carefully before investing.