Ignatius Navil Noronha, the chief executive officer of Avenue Supermarts Ltd, which runs DMart retail stores, has watched his wealth surge to more than a billion dollars as the shares of the retail firm escalated to a surprising113% this year.
However at closing, the stock erased most of its gains on profit booking following many brokerages downgraded the stock and reduced its target price amid stretched valuations.
Brokerage firm Edelweiss Capital has downgraded the stock to reduce from hold and decrease its target price by 30% to ₹3,782, Phillip Securities cut rating to neutral from buy and set target price to ₹4,913, implies a 10% decline from previous target, Morgan Stanley has cut to underweight from equal weight and reduced its target price to ₹4,338, down 19%, ICICI Securities has sell ratings from reduce and cut target price by 25% to ₹4,000 a share.
The stock ended at ₹4,894.90, down 8.16% from its previous close. In last seven consecutive sessions it advanced nearly 35%.
With this, Noronha, aged 47, has become India’s richest professional manager with his net worth surging past ₹7,744 crore. Currently, Noronha has 13.13 million shares or 2.03% stake in the company.
Naronha achieved this wealth thanks to the 19-fold rise in the share price of Avenue Supermarts. The stock was listed on 21 March 2017 with an issue price of ₹299 a share. Since then, the scrip surged over 1,800% from its issue price.
Born and raised in Mumbai, Noronha had completed his management degree from the Narsee Monjee Institute of Management Studies.
“We expect strong momentum to continue in the third quarter led by gains from higher footfalls given reduction in covid restrictions, rising consumer confidence due to vaccinations, higher value sales due to inflation in FMCG and General merchandise, upcoming festival season and more locations and product offerings in DMart Ready,” said Prabhudas Lilladher in a note to its investors.