D-Mart Enters The List Of Top 15 Most Valued Firms With A 3 Lakh Crore Market Cap

Latest Updated on 14 February 2023

The owner of the D-Mart Network of Hypermarkets, which market valuation today exceeded Rs 3 lakh crore as the stock surged to a new high, into the top 15 most valuable corporations by market capitalization.

Even during the COVID emergency stock crash in March 2020, it was one of the less corrected stocks. In the months of February and March 2020, the stock experienced an approximately 30% drop, and since that time, there has been no going back. From the closing low of Rs 1,824 in March 2020, it has increased by 158.6 percent, and in the current year of 2021, it has increased by 70 percent.

Avenue Supermarts, after Asian Paints, HCL Technologies, Wipro, Bharti Airtel, SBI, Bajaj Finance, ICICI Bank, HDFC, HUL, Infosys, and HDFC Bank, gained 7.06 percent on October 11 to close at a record high of Rs 4,719.60 and reach a market capitalization of Rs 3,05,710.79 crore.

These companies' market valuations vary from Rs 3 to Rs 9 lakh crore, with only Reliance Industries having a market size of more than Rs 10 lakh crore.

On Monday, the stock reached a new all-time high of Rs 4,837 and over the previous three sessions, it increased by 12 percent. Reopening of the economy, improvement in the firm's Profitability, Unique Business Strategy, status as a cash-rich company with no debts, expected strong festival demand, and likely positive Q2FY22 results all helped to the surge.

According to Jay Prakash Gupta, Founder of Dhan, "unique business strategy, consistent operating margins, promoter track record, and efficient supply chain, together with favorable conditions for FMCG Led Retail Company, helped the stock appreciate."

Dhan continued by stating that Avenue Supermarts' distribution system—Factory/Farm to D-Mart to Consumer—is unique. "Their operating margin is improved by this efficiency. Its Real Assets location is another factor that sets it all apart. The majority of the stores are owned and located in prime locations, offering both Capital Growth and a return on Real Estate Investment. Leverage of its financial resources is the third crucial element. Contrary to the majority of other retail chains, the company is debt-free and cash-rich."

He believes that in the future, new-age businesses like Big Basket and Grofers may present some problems to retail format corporations like Avenue Supermarts. "How well Avenue Supermarts can adjust to the changes will be crucial. An effort in that regard is D-Mart Ready."

The company released its preliminary financial results for the three months ending in September 2021 this week. Standalone revenue was reported at Rs 7,649.64 crore, up from Rs 5,218.15 crore in the same quarter last year, with 246 outlets overall as of September 2021.

Last Updated on 12 October 2021

The operator of D-Mart has entered the list of the top 15 most valued companies. Avenue Supermarts is the operator of the hypermarket chain stores and has made a fresh record with 3 lakh crore. The stock corrected around 30 percent from February to March 2020 and has seen continuous growth ever since. 

The company has gained the 15th spot in the most valued companies by market cap after Asian Paints, HCL Technologies, Wipro, Kotak Mahindra Bank, Bharti Airtel, SBI, Bajaj Finance, ICICI Bank, HDFC, HUL, Infosys and HDFC Bank. Avenue Supermarts is the only one with 3-9 lakh-crore whereas Reliance and TCS are the only ones with more than 10 Lakh-crore in market cap. The founder Jay Prakash Gupta has said in his statement that there are chances that D-Mart will face challenges with the service providers like Big Basket and Grofers in the market.