Shares of Spencer’s Retail surged in Tuesday’s trade after the company stepped into a new format chain, ‘Spencer’s Value Market’, which targets value-conscious consumers. The stock zoomed 13.23 per cent to hit a day high of Rs 72.75 over its previous close of Rs 64.25. At today’s high level of Rs 72.75, the stock traded 18.20 higher from its 52-week low of Rs 61.55, hit on December 26 last year.
Around 1.92 lakh shares changed hands on BSE today, which was more than 17 times compared to Spencer’s Retail’s two-week average volume of 11,000 shares.
Turnover on the counter stood at Rs 1.37 crore, commanding a market capitalisation (m-cap) of Rs 633.63 crore.
There were 58,454 sell orders on BSE, against buy orders of 33,544 shares. On NSE, 14.92 lakh shares were traded at a value of Rs 10.58 crore.
The stock was last seen trading higher than 5-day, 20- and 50-day moving averages but lower than 100-day and 200-day moving averages. The counter outperformed the sector by 8.45 per cent.
Spencer’s Retail has a one-year beta of 1.48, Trendlyne data showed, suggesting high volatility on the counter.
The counter’s 14-day relative strength index (RSI) came at 65.06. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a negative price-to-equity (P/E) ratio of 5.63.
Part of the RP-Sanjiv Goenka Group, the retailer said it would open new stores in six other cities this month. It has around 185 stores that cater to mid to premium segments.
Under Spencer’s hypermarket, the company currently operates 152 stores across 11 cities. Under Nature’s Basket, which was acquired from Godrej Industries in 2019, it has around 35 stores.
“Spencer’s Value Market is a new-age hypermarket serving modern, well-informed and value-conscious customers. Value Market is all set to launch at six locations, namely, Karimnagar, Warangal, Kurnool, Guntur, Bhimavaram & Vijayanagaram between January 16-23,” Group’s Head – Retail & FMCG, Shashwat Goenka said.
In the first half (H1) of FY23, which ended September last year, Spencer’s Retail reported a consolidated revenue of Rs 1,270 crore and a loss of Rs 87 crore.
As of September 2022, promotors held a 58.81 per cent stake in Spencer’s Retail.
Meanwhile, Indian equity benchmarks rose sharply after a muted start, led by gains in consumer goods and technology stocks.
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