DMart, India's leading supermarket chain, saw a surge of 12.33% in its stock following a 17.18% growth in standalone revenue in the third quarter of 2021 compared to the previous year. However, concerns have been raised over increased competition in the industry, with players like Flipkart and Amazon offering home delivery at lower prices. This has led to doubts over DMart's previously unquestioned dominance in terms of price advantage. Despite this, brokerage firms like CLSA continue to suggest an 'Outperform' rating on DMart, citing its strong store addition and same store sales growth.
The share price of Avenue Supermarts, the operator of DMart, took a hit and fell by 4.41% after the company reported its Q2 results for the fiscal year 2024. Despite a 14% growth in standalone revenue to Rs 14,050 crore, investors were disappointed as the growth was lower than expected. The company attributed the growth to an increase in sales from general merchandise and apparels, but the total number of stores remained consistent at 377. DMart's profit also saw a 17.5% rise on a year-on-year basis.