DMart Shares (2023): A Comprehensive Analysis

One of India’s top retail chains, D-Mart, also known as Avenue Supermarts Limited, is renowned for its accessibility, low prices, and broad reach. Since its founding in 2002 by businessman Radhakishan Damani, DMart Share has quickly spread throughout several Indian states, providing a wide variety of goods ranging from groceries to clothing and other necessities for the home.

Radhakishan Damani: DMart Founder

An extremely wealthy man named Radhakishan Damani founded Avenue Supermarts Ltd. He is the creator of the DMart chain of stores, which offers goods like clothing and food. He was born in Bikaner, Rajasthan, India, into a typical family. He and his family relocated to Mumbai when he was eleven years old.

DMart is a well-known and prosperous store in India. Despite his wealth, the owner leads a modest life. He is a Mumbai resident, owns a modest car, and is so generous that he donates money to those in need. Additionally, Radhakishan Damani engages in a number of charitable endeavors. He has contributed liberally to charities and educational institutions in order to further causes close to his heart.

Radhakishan Damani, a businessman and investor, and his family launched DMart, or Damani Mart, in 2000. In 2002, the first DMart store opened its doors in Powai with the simple goal of offering a large selection of goods at competitive prices to customers. DMart operates 324 stores across 10 states, one union territory, and the national capital. At first, DMart made the decision to grow its network of stores inside Maharashtra. Before expanding to other states and ramping up operations, the company took eight years to open its first ten stores.

Using a cluster-based expansion strategy, it first penetrated areas where it was already established before spreading to more recent areas. DMart’s growth can be ascribed to various factors, such as its customer-centric approach, supply chain management, store format, and strategy of offering products at everyday low prices.

Competitive Pricing: Consumers will ultimately benefit from more affordable shopping options as a result of other retailers being compelled to reassess their pricing strategies due to DMart’s emphasis on competitive pricing.
Improved Shopping Experience: Because of the founder of DMart’s commitment to providing excellent customer service and well-organized store layouts, the retail industry has raised the bar, and everyone’s shopping experiences have improved.
Employment Opportunities: People all around the nation now have a lot of job options thanks to DMart’s quick expansion, which has increased employment and stimulated the economy.
Promotion of Private Labels: The owner of DMart has effectively marketed its private labels by providing high-quality substitutes at more affordable costs, upending well-known brands, and fostering healthy competition.

Key Management Personnel

Since 2004, Mr. Ignatius Navil Noronha has served as the company’s managing director and CEO. The Narsee Monjee Institute of Management Studies is where he received his degree.
The President and CEO of Avenue E-Commerce Limited is Mr. Trivikrama Rao Dasu. He oversees every aspect of the business’s online sales.
At Avenue Supermarts, Mr. Ramakant Baheti has served as the group CFO and full-time director since the company’s founding. He holds an ICAI qualification as a chartered accountant.
The company’s chief financial officer, Mr. Niladri Deb, joined in 2018. In addition to earning a degree in chartered accounting, he studied management at IIM Ahmedabad. He had previously worked for Usha International, ITC, and The Kraft Heinz Company.
The Chief Operating Officer (COO) of the organization is Mr. Narayan Bhaskaran, who is also in charge of supply chain management. In May 2008, he began working at Avenue Supermarts as Vice President of HR, and in September 2016, he received a promotion to COO. In addition to being a certified company secretary, Mr. Bhaskaran holds a post-graduation degree in human resource management from XLRI, Jamshedpur.

Key Financial Ratios

Current Ratio: At the end of FY23, the current ratio had increased four times from 3.06 times in FY22. Because fixed deposits held with the bank the previous year were reclassified as current assets in FY23, the ratio increased.
Debt-to-equity Ratio: As of March 31, 2023, the company’s debt-to-equity ratio remained steady at 0.03 times, and it had no long-term debt on record.
Interest Coverage Ratio: By the end of FY23, the interest coverage ratio had increased from 56.09 times to 68.22 times.
Inventory Turnover Ratio: In FY23, the inventory turnover ratio increased from 12.77 times in FY22 to 14.83 times.
Operating Profit Margin: Operating profit margin increased from 7.32% in FY22 to 7.84% in FY23.
Net Profit Margin: In FY23, the net profit margin increased to 6.11% from 5.32% in FY22.
Return on Capital Employed (ROCE): The company’s ROCE increased from 17.37% at the end of FY22 to 21.50% at the end of FY23.
Return on Equity (ROE): Due to higher earnings, the ROE increased to 16.8% in FY23 from 12.32% at the end of FY22.

The most successful IPO in the market was DMart, which debuted on March 8, 2017. The initial public offering (IPO) was launched with prices between ₹295 and ₹299 per share. It was 104.5 times oversubscribed, with offers for 463.61 crore shares, compared to the 4.43 crore total issue size. On March 21, 2017, the shares went on sale for ₹604.7 apiece, which was 102% more than the issue price.

Over the course of the last five years, the price of DMart shares has increased at a compound annual growth rate (CAGR) of 20%. As of September 21, 2023, the share price is currently trading at approximately ₹3,680. It reached its highest point ever on October 18, 2021, at ₹5,900.

The company has never given its investors bonus shares or dividends during the course of its listing history. Avenue Supermarts‘ market capitalization as of September 21, 2023, is almost ₹2.4 lakh crore.

Read more