D-Mart market cap crosses Rs 3 trillion, stock up 70% in 2021

NEW DELHI: The owner of hypermarkets chain D-Mart, Avenue Supermarts, has entered the list of top 15 most valued companies by market capitalisation as its m-cap hit the Rs 3 trillion mark on Monday when its shares hit a new record high of 4,800 before closing at Rs 4,716. The stock has surged over 70% in 2021.
On October 11, Avenue Supermarts rallied 7.06% to end at a record closing high of Rs 4,719.60, with a market capitalisation of Rs 3,05,710.79 crore.It is now the 15th most valued company by market cap, after Asian Paints, HCL Technologies, Wipro, and Kotak Mahindra Bank, Bharti Airtel, SBI, Bajaj Finance, ICICI Bank, HDFC, HUL, Infosys and HDFC Bank.
Set up in 2002, D-Mart saw strong double-digit growth in sales and profits between FY09 and FY20. FY21 was affected due to the pandemic. D-Mart revenues grew 46% year-on-year in the second quarter of the financial year 2022 to Rs 7,649.64 crore from Rs 5,218.15 crore a year ago with recovery at 90% of pre-Covid.
D-Mart sales increased 123% in Mumbai and it has now forayed into Ahmedabad, Pune, Bangalore, Hyderabad and Faridabad. Its e-commerce business will be scaled rapidly once the Mumbai model turns profitable. In the September quarter, it added eight stores taking the total store count to 246. It currently has a presence across 11 states and 1 Union Territory.
"High inflationary trends allows value retailers like D-Mart to offer increased value to customers and gain share from General trade which is convenience-oriented. We expect inflation will enable average bill value to remain elevated vis à vis pre-Covid times with bill cuts normalizing as restrictions ease providing strong growth potential in the medium term," said brokerage Prabhudas Lilladher in a note.
In August 2021, Radhakishan S Damani, the promoter of the D-Mart supermarket chain, also entered the top 100 global billionaires list. Damani is now ranked 98th on the Bloomberg Billionaires Index with $24.68 as his net worth.