Why are D-Mart stocks falling ?

19th July 2023

D-mart closed it’s Q1 with only 2.3% net profit rise in FY23-24 at 659.36 Cr, even though managing a growth in revenue by 18% YoY.

Suggesting, The rising competition between the Giant in offline as well as online business. Below are competitors who may become a reason for downfall of D- Mart (Avenue Supermarts).

• Big Bazaar
• Big Basket
• Reliance Mart
• Amazon Pantry
• Spencer’s
• Dunzo
• Swiggy Instamart
• Zepto

Some offline local competitors also increasing in the sub urban regions like Raigarh and Mumbai,

• B- MART
• NEW ZIA SUPER MART

Which can also be observed in your locality by the rising store SKU’s or the increase in store area indicating the scope of growth in FMCG and food sector.

Since the number of Zepto, Dunzo and Instamart are rising by the monetary heat of Investors, they may not sustain big time. But the bigger challenge being posed by Reliance and Tata in the same segment.

This is the time for Investors to observe the changes due to these players. Though, D- mart has real estate in their favor since they own each piece of land.

Note:- These are just some insights, please take advise from your advisor before investment.