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COMPANY ANALYSIS:
DMART
By KAUTILYA JOSHI
(FM-12)

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PREFACE

Companies began operating in a highly complex structure during the course of the last 25
years. The introduction of many departments has allowed for the management of various
work areas. The majority of the time, a company's operating procedures determines the
company's potential position.

This project report has been created to analyse the ins and outs of DMART in order to help
investors understand the firm from the perspective of investing in it and to give students a
quick overview of how such a large company operates on the ground level.

The primary goal of conducting the study for this report is to provide insightful information
about DMART and gain a comprehensive understanding of its existence, operations,
management, stock composition, financial situation, and ethical influence.

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DECLARATION

I, the student at B. K. SCHOOL OF PROFESSIONAL & MANAGEMENT STUDIES,

Kautilya Joshi, hereby declare that the project entitled “COMPANY ANALYSIS: DMART”
is my original work submitted for the grand project of the subject ‘Project Studies’. I declare
that the work has not been submitted for any other degree, diploma, or fellowship. I further
declare information collected from primary and secondary sources has been duly
acknowledged in the project. I shall be responsible for any plagiarism if noticed in the
research project.

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ACKNOWLEDGEMENT

I would like to express our gratitude to B. K. School of Professional & Management Studies,
Prof. Nilam Panchal, Prof. Himanshi Prajapati, Prof. Snehal Shah, Prof. Karan Bhatt, and
Prof. Aunkita Sharma for providing us with all the help, encouragement, and guidance to
complete the project.

My appreciation and thanks also go to people who have willingly helped with their abilities.
Finally, I express gratitude to my friends and family for continuous personal support and
encouragement.

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TABLE OF CONTENT

Particular Pg. No.

COMPANY PROFILE 6
PRESENCE AND EXPANSION STRATEGY 9
MISSION AND VISION 11
BUSINESS MODEL 12
SEGMENTS OF DMart 16
PRODUCT LINE 16
FINANCIALS 18
KEY PERFORMANCE INDICATORS 37
MARKETING MIX (4P’s) 40
SWOT ANALYSIS 43
PESTEL ANALYSIS 45
COMPETITORS 49
STOCK ANALYSIS 50

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COMPANY PROFILE:

OVERVIEW

DMart is a one-stop supermarket chain that aims to offer customers a wide range of basic
home and personal products under one roof. Each DMart store stocks home utility products
- including food, toiletries, beauty products, garments, kitchenware, bed and bath linen,
home appliances and more - available at competitive prices that our customers appreciate.
Our core objective is to offer customers good products at great value.

DMart was started by Mr. Radhakishan Damani and his family to address the growing
needs of the Indian family. From the launch of its first store in Powai in 2002, DMart today
has a well-established presence in 294 locations across Maharashtra, Gujarat, Andhra
Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab,
and Rajasthan. With our mission to be the lowest priced retailer in the regions we operate,
our business continues to grow with new locations planned in more cities.

The supermarket chain of DMart stores is owned and operated by Avenue Supermarts Ltd.
(ASL). The company has its headquarters in Mumbai.

* The brands D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour, etc are
brands owned by ASL.

THE JOURNEY

By the late 1990s, our founder, Mr. Radhakishan Damani, was already established as one of
the more successful and well-known value investors in the Indian equity markets. Through
his investing style, he had developed a very keen understanding of the Indian consumer
sector and its psyche. He was anxious to start a business beyond investing, which would
enable him to test his hypothesis about the Indian consumer. After a couple of years of
introspection and research, he decided to start a grocery retail chain, focusing primarily on
the value segment. DMart, our retail chain, was conceived by him in the year 2000. Mr.
Damani imagined the retail business with the same values of simplicity, speed, and
nimbleness that he espoused in his stellar investing career. About DMart A focus on financial
fundamentals, high levels of patience and strong conviction have been the bedrock on which
the Company’s values and business direction have been built. DMart took eight years to start

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its first ten stores. This wasn’t because of dearth of investment opportunities, but more
because of his belief in the importance of validating the business model from a perspective of
both profitability and scalability. His beginnings at DMart were frugal. For a number of years
since inception, DMart’s corporate operations were run from a small space carved out from
one of the early stores. He and his early leadership team worked together as one cohesive unit
without any hierarchy or barriers. DMart was conceived by value investor Mr. Radhakishan
Damani in the year 2000, who at the time was operating a single store in Maharashtra. With a
mission to be the lowest-priced retailer in its area of operation, DMart has grown steadily
over the years, and operates 284 stores in 10 States, 1 Union Territory and NCR. The
Company has delivered stable performance across stakeholder metrics by focusing on
financial fundamentals, with fortitude and strong conviction. More importantly, from the very
beginning, he had the foresight to understand and strongly believed that any business needs
the right blend of entrepreneurship and professionalism. Entrepreneurship to build and
strengthen the concept in its formative years, and professionalism to allow a committed team
to create, sustain and grow a scalable business model into the future. Today, DMart continues
to focus on this early belief system created during our formative years. We have a good blend
of entrepreneurial spirit and high-quality execution. We humbly attribute our success to the
values and the way of business thinking that our founder has instilled in us.

REGISTERED ADDRESS

REGISTERED OFFICE

ANJANEYA CHS LTD ORCHARD AVENU, OPP HIRANANDANI FOUNDATION

SCH,MUMBAI,MAHARASHTRA-400076

PH : 91-22-40496500

WEBSITE : HTTP://WWW.DMARTINDIA.COM

E-MAIL : [email protected]

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BOARD OF DIRECTORS

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Figure 1: SOURCE: Annual Reports DMart 2021-2022

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SUSTAINABILITY

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CORPORATE SOCIAL RESPONSIBILITY

One of our key CSR focus areas is on enhancing the quality of education in Government /
Municipal / Zilla Parishad Schools (Public Schools). Our interventions provide support to
these schools within the state curriculum framework by enhancing the quality of teaching
methodology so that student learning outcomes are better.

It includes:

1. Digital Literacy Programme

2. English for All
3. Library programme
4. Swachh School Abhiyan
5. Building as a Learning Aid (BALA)
6. Remedial classes
7. Public Private Partnership (PPP) model Schools (2 Public Schools covered)
8. Parent Engagement Programme
9. Physical development through sports programme

MISSION

At DMart, they research, identify, and make available new products and categories that suit
the everyday needs of the Indian family. Their mission is to provide the best value possible
for our customers, so that every rupee they spend on shopping with us gives them more
value for money than they would get anywhere else.

VISION

To offer customers a wide range of basic home and personal products under one roof.

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DEEP DISCOUNTING:

The BUSINESS MODEL

The term Deep discounting (when it comes to retail business) refers to the cutting off the
distribution channel up to a huge extent, bargaining and delivering the product directly
from the manufacturer to the end consumer.

WHAT ALLOWS DMART BARGAIN?

Volume buying has been one of the biggest weapons of DMart in order to win the retail war.
Let us take an example here:

Let us say,

A normal Kirana store buys one hundred Pack of 1L Ghee @ 480 Rs. And sells it @ 530
Rs. The total margin here is 50 Rs. Per Pack which sums up to a profit of 5000 Rs.

At the same time, DMart buys ten thousand Pack of 1L Ghee @ 420 Rs. and selling it with
same margin of 50 Rs. Per Pack @ 470 Rs. which is even lesser than the buying price of
Kirana stores- which makes the Kirana stores stand no chance to compete- and makes a
healthy 5,00,000 Rs. profit. Due to this huge level of gap in the last price attracts most of the
customers at DMart. This is the power of volume selling which also enables the inventories
move quickly which eventually leads to fresh stock availability.

SLOTTING FEES

It is a payment that is made by the manufacturer of goods to the superstore to keep its
products on the shelf for sale. Also called an entry fee for the products, which are held in the
supermarket. Being a supermarket chain DMart also charges a 'Slotting Fee.'
The store attracts high volumes of customers, making it an attractive and opportunistic place
for the manufacturers to keep their products. This attracts more and more manufacturers
willing to put their products in the store.

A slotting fee indirectly reduces the product's purchasing price for the retailer, thereby
allowing it to offer the products at discounted prices, i.e., less than the MRP (Maximum
Retail Price), hence attracting large buyers.

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ADVANTAGE OF CONSUMER’S BEHAVIOURAL PATTERN

Offering a variety of products at low-prices creates psychology in customers to buy more,

which is offered at a discount. This behavioural pattern among the consumers has been
evident when the 'Sales Period' of the year arrives in stores.

PRODUCT MIX

The company comprises everyday use products for its customers, which are categorized as
Foods, Non-foods and General Merchandise & Apparel. The chain operates on a B2C
(Business to Consumer) model, where goods are directly sold from the manufacturer to the
end-user.
The demand for these goods is on-going as they comply with the basic day-to-day needs,
thereby creating a demand throughout the year. This eliminates the risk of high demand
fluctuations and provides consistency to the business.

REGIONAL GROUND

India being a diverse country has various regional specific goods. DMart grabbed this
opportunity by stocking its stores with area-specific products. People across different states
have unique lifestyles habits and hence lead to slightly different consumption habits.
DMart pooled the popular local brands of a particular region in one place, making it more
convenient for the buyers to avoid going to the local Kirana shops. This helps DMart to cut
the competition from general Kirana stores gaining more market share.

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FOOD FOR THOUGHT!

DMart currently operates the majority of its business via brick-and-mortar stores. But the
entry of online e-tailers has started to disrupt the market share of existing brick and mortar
stores. These e-tailers are highly cost-efficient and are more widely accepted due to a simple
concept of shopping at the tip of their fingers.

Avenue Supermarts have launched 'Avenue E-Commerce Ltd.,' its online shopping portal, to
keep up with the competition and the industry. But competing in this space calls for its
challenges and new players like 'Amazon,' which is a giant whale in itself. So, whether
DMart will be able to keep up with the changing market scenario or not is food for thought.

TARGET MARKET

DMart’s target customers are low-income groups who are looking for low-cost goods. Thus,
by providing excellent quality and branded products at a lower cost, DMart attracts a more
extensive customer base than other retailers.

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GENIUS COST CUTTING STRATEGY

Figure 2: Source: Think School

The Company operates on self-owned stores, which allows it to be a low or no debt company
making it stronger financially.  Further, no rental cost helps in high positive cash flows,
which are used for opening more stores. Although the expansion and growth in self-owned
stores are slow, it has its own advantages. Of all the existing stores to date, almost 80% are
self-owned.

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SEGMENTS OF DMart

 DMart
 DHomes
 DMart Groceries
 DMart Ready

PRODUCTS UNDER:

DMart: Its principal product is every item that is sold in DMart stores but does not fall under
the DMart umbrella. In other words, all of the agreements established with DMart for the sale
of various goods from various businesses.

DHomes: Under this heading, DMart manufactures its own versions of home items such
water bottles, casseroles, cup saucers, mugs, etc.

DMart Groceries: Here, DMart directly deals with the farms and acts as the only channel of
seller and, as the name suggests, has many kinds of groceries,

DMart Ready: The main goal of DMart Ready is to turn potential customers into paying
customers who lack the time to visit the shop and make purchases since it is too busy there.
Therefore, one has two alternatives when placing an online order with DMart: either have
their items delivered to their door or have them prepared for pick-up from a local store at a
later time.

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KEY PRODUCT CATEGORIES:

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FINANCIALS

 BALANCE SHEET:

BALANCE MAR MAR MAR MAR MAR  

SHEET OF 22 21 20 19 18
AVENUE
SUPERMART
S (in Rs. Cr.)

  12 12 12 12 12  
months months months month month
s s

EQUITIES  
AND
LIABILITIES

SHAREHOLD  
ER'S FUNDS

Equity Share 647.77 647.77 647.77 624.08 624.08  

Capital

TOTAL 647.77 647.77 647.77 624.08 624.08  

SHARE
CAPITAL

Reserves and 13,276. 11,657. 10,487. 4,970. 4,018.  

Surplus 34 51 75 40 63

TOTAL 13,276. 11,657. 10,487. 4,970. 4,018.  

RESERVES 34 51 75 40 63
AND

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SURPLUS

TOTAL 13,924. 12,305. 11,135. 5,594. 4,642.  

SHAREHOLD 11 28 52 48 71
ERS FUNDS

NON-  
CURRENT
LIABILITIES

Long Term 0.00 0.00 0.00 125.67 246.00  

Borrowings

Deferred Tax 64.84 51.90 48.20 64.07 46.30  

Liabilities [Net]

Other Long- 320.72 217.36 178.60 0.78 0.78  

Term Liabilities

Long Term 0.00 0.00 0.00 0.00 0.00  

Provisions

TOTAL NON- 385.56 269.26 226.80 190.52 293.07  

CURRENT
LIABILITIES

CURRENT  
LIABILITIES

Short Term 0.00 0.00 3.73 299.15 7.25  

Borrowings

Trade 531.21 565.54 445.97 458.28 315.88  

Payables

Other Current 529.69 484.11 257.78 442.47 341.70  

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Liabilities

Short Term 33.39 22.20 14.33 12.67 11.85  

Provisions

TOTAL 1,094.2 1,071.8 721.81 1,212. 676.68  

CURRENT 9 5 57
LIABILITIES

TOTAL 15,403. 13,646. 12,084. 6,997. 5,612.  

CAPITAL AND 96 39 13 57 47
LIABILITIES

ASSETS  

NON-  
CURRENT
ASSETS

Tangible 8,723.1 6,619.9 5,707.6 4,205. 3,233.  

Assets 0 0 9 86 65

Intangible 9.52 9.45 11.19 10.27 6.20  

Assets

Capital Work- 1,073.1 1,006.2 361.94 376.55 147.05  

In-Progress 4 1

Other Assets 96.11 91.49 16.53 18.10 16.33  

FIXED 9,901.8 7,727.0 6,097.3 4,610. 3,403.  

ASSETS 7 5 5 78 23

Non-Current 532.31 402.30 287.30 212.00 129.50  

Investments

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Deferred Tax 0.00 0.00 0.00 0.00 0.00  

Assets [Net]

Long Term 0.00 0.00 0.00 0.00 0.00  

Loans and
Advances

Other Non- 1,618.6 1,556.1 3,407.2 145.74 133.33  

Current Assets 4 5 1

TOTAL NON- 12,052. 9,685.5 9,791.8 4,968. 3,666.  

CURRENT 82 0 6 52 07
ASSETS

CURRENT  
ASSETS

Current 0.00 0.00 0.00 0.00 51.70  

Investments

Inventories 2,586.8 2,167.3 1,909.4 1,576. 1,147.  

9 3 3 22 04

Trade 230.86 72.10 48.53 75.52 33.36  

Receivables

Cash And 284.31 1,431.9 92.24 213.55 556.46  

Cash 9
Equivalents

Short Term 0.00 0.00 0.00 0.00 0.00  

Loans and
Advances

Other Current 249.08 289.47 242.07 163.76 157.84  

Assets

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TOTAL 3,351.1 3,960.8 2,292.2 2,029. 1,946.  

CURRENT 4 9 7 05 40
ASSETS

TOTAL 15,403. 13,646. 12,084. 6,997. 5,612.  

ASSETS 96 39 13 57 47

OTHER  
ADDITIONAL
INFORMATIO
N

CONTINGENT  
LIABILITIES,
COMMITMEN
TS

Contingent 2,696.6 2,827.9 2,207.0 1,583. 0.00  

Liabilities 1 7 2 58

CIF VALUE  
OF IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00  

Stores, Spares 0.00 0.00 0.00 0.00 0.00  

and Loose
Tools

Trade/Other 0.00 0.00 0.00 0.00 0.00  

Goods

Capital Goods 0.00 0.00 0.00 0.00 0.00  

EXPENDITUR  
E IN FOREIGN

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EXCHANGE

Expenditure In 633.38 440.45 626.27 650.29 401.06  

Foreign
Currency

REMITTANCE  
S IN FOREIGN
CURRENCIES
FOR
DIVIDENDS

Dividend -- -- -- -- --  
Remittance in
Foreign
Currency

EARNINGS IN  
FOREIGN
EXCHANGE

FOB Value of -- -- -- -- --  
Goods

Other Earnings 0.97 0.01 5.04 5.98 --  

BONUS  
DETAILS

Bonus Equity -- -- -- -- --  
Share Capital

NON-  
CURRENT
INVESTMENT
S

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Non-Current -- -- -- -- --  
Investments
Quoted Market
Value

Non-Current -- -- -- -- 129.50  
Investments
Unquoted
Book Value

CURRENT  
INVESTMENT
S

Current -- -- -- -- --  
Investments
Quoted Market
Value

Current -- -- -- -- 51.70  
Investments
Unquoted
Book Value

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 PROFIT AND LOSS STATEMENT:

PROFIT & MAR MAR MAR MAR MAR  

LOSS 22 21 20 19 18
ACCOUNT
OF AVENUE
SUPERMART
S (in Rs. Cr.)

  12 12 12 12 12  
moths moths moths moths moths

INCOME  

REVENUE 33,118. 25,966. 27,014. 21,827. 16,446.  

FROM 99 61 48 98 54
OPERATION
S [GROSS]

Less: 2,860.7 2,237.2 2,372.1 1,946.4 1,471.8  

Excise/Service 8 3 8 3 9
Tax/Other
Levies

REVENUE 30,258. 23,729. 24,642. 19,881. 14,974.  

FROM 21 38 30 55 65
OPERATION
S [NET]

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TOTAL 30,352. 23,787. 24,675. 19,916. 15,008.  

OPERATING 50 20 01 25 89
REVENUES

Other Income 140.87 208.90 63.33 51.41 72.65  

TOTAL 30,493. 23,996. 24,738. 19,967. 15,081.  

REVENUE 37 10 34 66 54

EXPENSES  

Cost Of 0.00 0.00 0.00 0.00 0.00  

Materials
Consumed

Purchase Of 26,472. 20,614. 21,349. 17,409. 12,862.  

Stock-In Trade 23 23 14 12 76

Operating And 0.00 0.00 0.00 0.00 0.00  

Direct
Expenses

Changes In - - - - -  
Inventories Of 419.56 257.90 333.21 429.18 213.88
FG, WIP And
Stock-In Trade

Employee 548.23 495.13 424.74 335.03 276.56  

Benefit
Expenses

Finance Costs 39.60 34.48 62.76 47.15 59.42  

Depreciation 421.06 371.36 339.81 198.80 154.65  

And
Amortisation

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Expenses

Other 1,250.0 1,194.0 1,112.2 959.10 746.14  

Expenses 8 1 1

TOTAL 28,311. 22,451. 22,955. 18,520. 13,885.  

EXPENSES 64 31 45 02 65

PROFIT/ 2,181.7 1,544.7 1,782.8 1,447.6 1,195.8  

LOSS 3 9 9 4 9
BEFORE
EXCEPTIONA
L,
EXTRAORDI
NARY ITEMS
AND TAX

Exceptional 0.00 0.00 0.00 0.00 0.00  

Items

PROFIT/ 2,181.7 1,544.7 1,782.8 1,447.6 1,195.8  

LOSS 3 9 9 4 9
BEFORE TAX

TAX  
EXPENSES-
CONTINUED
OPERATION
S

Current Tax 539.55 389.35 448.84 501.21 417.17  

Less: MAT 0.00 0.00 0.00 0.00 0.00  

Credit
Entitlement

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Deferred Tax 12.94 3.70 -15.87 17.77 -5.45  

Tax For 13.07 -13.57 0.03 -7.69 -0.49  

Earlier Years

TOTAL TAX 565.56 379.48 433.00 511.29 411.23  

EXPENSES

PROFIT/ 1,616.1 1,165.3 1,349.8 936.35 784.66  

LOSS AFTER 7 1 9
TAX AND
BEFORE
EXTRAORDI
NARY ITEMS

PROFIT/ 1,616.1 1,165.3 1,349.8 936.35 784.66  

LOSS FROM 7 1 9
CONTINUING
OPERATION
S

PROFIT/ 1,616.1 1,165.3 1,349.8 936.35 784.66  

LOSS FOR 7 1 9
THE PERIOD

OTHER  
ADDITIONAL
INFORMATIO
N

EARNINGS  
PER SHARE

Basic EPS 24.95 17.99 21.49 15.00 12.57  

(Rs.)

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Diluted EPS 24.75 17.99 21.33 14.79 12.41  

(Rs.)

VALUE OF  
IMPORTED
AND
INDIGENIOU
S RAW
MATERIALS
STORES,
SPARES AND
LOOSE
TOOLS

Imported Raw 0.00 0.00 0.00 0.00 0.00  

Materials

Indigenous 0.00 0.00 0.00 0.00 0.00  

Raw Materials

STORES,  
SPARES AND
LOOSE
TOOLS

Imported 0.00 0.00 0.00 0.00 0.00  

Stores and
Spares

Indigenous 0.00 0.00 0.00 0.00 0.00  

Stores and
Spares

DIVIDEND  
AND
DIVIDEND

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PERCENTAG
E

Equity Share 0.00 0.00 0.00 0.00 0.00  

Dividend

Tax On 0.00 0.00 0.00 0.00 0.00  

Dividend

Equity 0.00 0.00 0.00 0.00 0.00  

Dividend Rate
(%)

 CASH FLOW STATEMENT:

CASH FLOW MAR MAR MAR MAR MAR  

OF AVENUE 22 21 20 19 18
SUPERMARTS 
(in Rs. Cr.)

  12 12 12 12 12  
month month month month month
s s s s s

NET 2,181. 1,544. 1,782. 1,447. 1,195.  

PROFIT/LOSS 73 79 89 64 89
BEFORE
EXTRAORDIN
ARY ITEMS
AND TAX

Net Cash-Flow 1,315. 1,385. 1,287. 852.78 722.98  

from Operating 16 47 39

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Activities

Net Cash Used - - - - 432.50  

in Investing 1,292. 1,155. 4,699. 1,000.
Activities 15 48 58 72

Net Cash Used - - 3,383. 204.04 -  

from Financing 120.75 140.25 53 1,121.
Activities 73

Foreign 0.00 0.00 0.00 0.00 0.00  

Exchange
Gains / Losses

Adjustments On 0.00 0.00 0.00 0.00 0.00  

Amalgamation
Merger
Demerger
Others

NET INC/DEC -97.74 89.74 -28.66 56.10 33.75  

IN CASH AND
CASH
EQUIVALENTS

Cash And Cash 181.19 91.45 120.11 64.01 30.26  

Equivalents
Begin of Year

Cash And Cash 83.45 181.19 91.45 120.11 64.01  

Equivalents End
of Year

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 FINANCIAL RATIOS:

KEY MAR MAR MAR MAR MAR  

FINANCIAL 22 21 20 19 18
RATIOS OF
AVENUE
SUPERMAR
TS (in Rs.
Cr.)

PER SHARE  
RATIOS

Basic EPS 24.95 17.99 21.49 15.00 12.57  

(Rs.)

Diluted EPS 24.75 17.99 21.33 14.79 12.41  

(Rs.)

Cash EPS 31.45 23.72 26.08 18.19 15.05  

(Rs.)

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Book 214.95 189.96 171.91 89.64 74.39  

Value /Share
(Rs.)

Book 214.95 189.96 171.91 89.64 74.39  

Value /Share
(Rs.)

Dividend / 0.00 0.00 0.00 0.00 0.00  

Share (Rs.)

Revenue 468.57 367.22 380.92 319.13 240.49  

from
Operations/S
hare (Rs.)

PBDIT/Share 40.79 30.11 33.74 27.14 22.59  

(Rs.)

PBIT/Share 34.29 24.38 28.49 23.95 20.11  

(Rs.)

PBT/Share 33.68 23.85 27.52 23.20 19.16  

(Rs.)

Net 24.95 17.99 20.84 15.00 12.57  

Profit/Share
(Rs.)

PROFITABIL  
ITY RATIOS

PBDIT 8.70 8.20 8.85 8.50 9.39  

Margin (%)

PBIT Margin 7.31 6.63 7.47 7.50 8.36  

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(%)

PBT Margin 7.18 6.49 7.22 7.26 7.96  

(%)

Net Profit 5.32 4.89 5.47 4.70 5.22  

Margin (%)

Return on 11.60 9.46 12.12 16.73 16.90  

Net worth /
Equity (%)

Return on 15.52 12.55 16.24 25.83 25.43  

Capital
Employed
(%)

Return on 10.49 8.53 11.17 13.38 13.98  

Assets (%)

Total 0.00 0.00 0.00 0.08 0.05  

Debt/Equity
(X)

Asset 2.09 174.31 204.19 284.61 267.42  

Turnover
Ratio (%)

LIQUIDITY  
RATIOS

Current Ratio 3.06 3.70 3.18 1.67 2.88  

(X)

Quick Ratio 0.70 1.67 0.53 0.37 1.18  

(X)

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Inventory 0.00 10.98 12.92 12.64 13.08  

Turnover
Ratio (X)

Dividend 0.00 0.00 0.00 0.00 0.00  

Pay-out Ratio
(NP) (%)

Dividend 0.00 0.00 0.00 0.00 0.00  

Pay-out Ratio
(CP) (%)

Earnings 0.00 0.00 0.00 0.00 0.00  

Retention
Ratio (%)

Cash 0.00 0.00 0.00 0.00 0.00  

Earnings
Retention
Ratio (%)

VALUATION  
RATIOS

Enterprise 258,78 183,444 142,46 91,957 82,512  

Value (Cr.) 8.06 .81 6.23 .27 .81

EV/Net 8.53 7.71 5.77 4.62 5.50  

Operating
Revenue (X)

EV/EBITDA 97.94 94.04 65.19 54.30 58.52  

(X)

Market- 8.54 7.77 5.78 4.61 5.52  

Cap/Net

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Operating
Revenue (X)

Retention 0.00 0.00 0.00 0.00 0.00  

Ratios (%)

Price/BV (X) 18.61 15.02 12.80 16.40 17.84  

Price/Net 8.54 7.77 5.78 4.61 5.52  

Operating
Revenue

Earnings 0.01 0.01 0.01 0.01 0.01  

Yield

 CAPITAL STRUCTURE:

Issue
Authoriz
Perio Instrume d
ed -PAIDUP-
d nt Capit
Capital
al
Face
From-To   (Rs. cr) (Rs. cr) Shares (no’s) Valu Capital
e

2021 Equity 750 647.7 647,774,6 10 647.7

-2022 Share 7 91 7

2020 Equity 750 647.7 647,774,6 10 647.7

-2021 Share 7 91 7

2019 Equity 750 647.7 647,774,6 10 647.7

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Issue
Authoriz
Perio Instrume d
ed -PAIDUP-
d nt Capit
Capital
al
Face
From-To   (Rs. cr) (Rs. cr) Shares (no’s) Valu Capital
e

- Share 7 91 7
2020

2018 Equity 750 624.0 624,084,4 10 624.0

-2019 Share 8 86 8

2017 Equity 750 624.0 624,084,4 10 624.0

- Share 8 86 8
2018

[Source: Moneycontrol]

KEY PERFORMANCE INDICATOR:

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Figure 3: Source: Annual Reports DMart 2021-2022

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Figure 4: Source: Annual Reports DMart 2021-2022

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MARKETING MIX of DMart (4P’s)

A marketing mix is a model that a company uses to get its products and services noticed by
the right people at the right time. This model is based on pillars of 4Ps: Product, Price, Place
and Promotion. It forms the conceptual core of an overall marketing strategy. 
Further, getting through the marketing mix model of DMart by looking at the parameters of
Product, Price, Place and Promotion in the coming section.

PRODUCT STRATEGY of DMart

Talking about the product strategy of DMart, as previously said, it offers a wide range of
products, the company has segmented its wide range of products into three categories, i.e.,
Foods, Non-foods and General Merchandise and Apparel. 
 Under its Foods Category – It offers groceries, staples, processed foods, dairy, frozen
products, beverages & confectionery and fruits & vegetables that contributes close to
52 percentage in revenues
 Under its Non-foods Category – It offers home care products, personal care products,
toiletries and other over-the-counter products that contribute close to 21 percentage in
revenues 
 Under its General Merchandise and Apparel Category – It offers bed & bath, toys &
games, crockery, plastic goods, garments, footwear, utensils and home appliances that
contributes close to 29 percentage in revenues
DMart also sells a variety of products under its own name through brand names such as D
Mart Minimax, D Mart Premia, D Homes, Dutch Harbour. 

PRICE STRATEGY of DMart

DMart deeply discounts its merchandise and offers products at less than competitive prices.
Thanks to this strategy, it has succeeded in creating an image as a low-cost retailer and has
attracted customers who are price sensitive. 
The company prides itself on being able to provide affordable prices to its customers
regardless of whether they live in urban areas or rural areas. 
Its pricing is usually less than the Maximum Retail Price (MRP) except for vegetables, fruits,
and medicines. During festival seasons, these low prices make customers buy products in
bulk quantities which results in a huge volume of sale. 

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The pricing strategy of DMart is the major reason why its supermarkets’ chain has been one
of the most successfully operated entities in the country.

PLACE & DISTRIBUTION of DMart

DMart is the fastest-growing supermarket retail brand in India. As of 2022, DMart has about
284 stores present in about 11 states and 1 union territory and is constantly expanding its
stores’ footprints.

DMart stores are present in a major part of India which includes a presence in cities like
Ahmedabad, Hyderabad, Bangalore, Chennai, Mumbai etc. 
All of its stores are strategically placed as this helps the company to gain a competitive
advantage as easy accessibility attracts customers and also leads to proper transportation
facility for logistics and operations related functioning which is very important for the
survival during uneven times and to accelerated growth of the business during the normal
times. 

PROMOTION STRATEGY of DMart

DMart, being the largest multi-brands in India, has been maintaining its positioning as a
supermarket offering products at lower prices. 
They offer various coupons to reward the customers and employees and thus boost their sales
in the market. Coupons are also allotted to the customers when they meet certain standards of
bulk purchases. 
For instance, during the festive seasons, they offer 15% off on sweets and various other
products. It also offers goods at 50% off or at one plus one free offer.
The company however doesn’t engage in aggressive marketing promotion but chooses to
promote itself through Newspaper Ads and Outdoor Ads. It also recently collaborated with
HDFC Bank and offered additional discounts on payments done with HDFC Cards.

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MARETING STRATEGY of DMart

DMart is one such company that doesn’t focus much on marketing itself aggressively unlike
most of its competitors. Rather it has always maintained its Unique Selling Position (USP) of
offering goods at less than Maximum Retail Price (MRP).

Thus, DMart has managed to get a lot of lower price points than its competitors and this is
what makes it stand out when compared to other stores selling the same products.
However, it has involved in aggressive CSR activities and other low-cost promotional
activities.

 Better School, Brighter Futures! – A CSR Activity Campaign of DMart:

DMart is a company committed to supporting its employees and communities through
socially responsible business practices. Through this, DMart aims to make a positive
impact on the lives of those who work for it, as well as the people around them

Through this campaign, it has launched an excellence program at various schools in

and around Mumbai that helps students in understanding things better and aims at
creating an ecosystem that allows students to benefit from better education,
mentoring, research facilities as well as networking opportunities. 

 Promotion via Low-Cost Advertising Mediums:

DMart uses both visuals and print advertisements to promote its name. The visual
component consists of hoardings that are displayed in major locations of stores
announcing specific product offers.

It also uses newspaper ads that contain information about sales and coupons. These
ads utilize pictures of different products along with descriptions that explain why
shoppers should buy them.

 Digital Presence of DMart:

Although DMart has one of the strongest offline presences among all major retailers,
the retail giant has avoided creating a digital footprint because it doesn’t believe it
needs one.

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Today, digitalization has become a necessary component for any successful brick and
mortar or e-commerce store and DMart moving forward should embrace the idea of
digitalization as part of its overall strategy for growth.

However, the company has taken various steps on the improvements on digital fronts
such as by installing chatbot on Facebook Messenger, launching DMart Ready but it
has a long way to go.

DMart uses Facebook just to inform and clarify doubts of customers which is great
but this translates to underutilization of social media. It is not present on Instagram
and Twitter which is a major drawback and should work on having a healthy presence
on these platforms.

Talking about its competitors like Future Retail (the company that runs Big Bazaar in
India) has maintained a very strong digital presence. So, DMart should also be
focusing on its digital presence to have an extra advantage.

SWOT ANALYSIS

STRENGTHS:

 Focus on the long term: Because Damani, the creator of D Mart, is an investor, the
business has only ever focused on the long term. As a result, the business now uses a
demand-driven pricing strategy to maximise returns.
 Slow scaling: D Mart takes its time raising the ladder up, starting at a very low pitch.
This improved the company's ability to manage the bottom line and offered it more
clout and insight into its supply chain.
 Customer-centric management strategy: D Mart has a very strict policy about the
workplace and is very open with its employees. They do enjoy positive relationships
with stakeholders as well as with suppliers and manufacturers.
 Discounting strategy: One thing that distinguishes D Mart from its competition is its
aggressive discounting programme. The shop has gained market share by offering
essential things at a fixed discount price that few competitors can match.
 Price-based distinction is evident: D Mart insisted on creating their own trends rather
than following those established by other retail businesses. They controlled the market

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and offered their goods at far cheaper prices than competitors by making a
straightforward pricing distinction.

WEAKNESSES:

 Focus on other regions: Unlike its rivals, who are everywhere, D Mart has focused
mostly on the Western States and has a relatively limited presence there. Because of
this, they haven't been able to become well-known in the industry.
 Slow growth: D Mart was founded about 16 years ago, well before India was
consumed by the retail boom. However, unlike many of the following entries, it has
not been able to dominate the market, mostly because of its long-term view.
 Low prices that are sustainable: Due to the company's zero credit policy, suppliers and
manufacturers are more willing to work with them, allowing them to maintain the low
prices that are unimaginably low for competitors. Wherever possible, D Mart adopts a
no-frills strategy, with a focus on cost-cutting. Most upscale stores don't have the
frills, and their services are crucial. Customers primarily come here to shop because
of the discounted items' low costs. So, it's unclear how long this differentiation will
last.

OPPORTUNITIES:

 Technology: Technology can greatly improve in-store experiences for retailers, and
they may leverage artificial intelligence, and other technologies to develop value-
added services for their clients for which they can charge more.
 Personalization of services: Consumers are looking for specialised services and are
willing to pay more for them. Retailers ought to capitalise on this readiness to spend
more money and raise the calibre of the services they provide.
 New Developing Markets: The biggest opportunity for the company may lie in new
developing markets and mall culture.
 South of India: D-Mart has the option of opening stores there as well as in remote
places without any now.

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THREATS:

 Large city dwellers are typically very lazy about leaving their houses and frequently
prefer to shop online. So, the majority of shops are now seriously threatened by
businesses like Amazon and Flipkart.
 India’s top trend right now is online start-ups. Many of these are aggregators that
connect the producer and the customer in an affordable manner. These businesses are
particularly dangerous because there are a lot of new brands entering the aggregation
market as a result of decreased entry barriers.
 Global competitors.
 Competition among Best Price & Reliance Retail.
 Unorganized retail is also a big threat.
 Government Policies and regulations related to the retail sector.
 International Players who are willing to open stores in India

PESTEL ANALYSIS

POLITICAL FACTORS:

 DMart has a neat and anti-corruption reputation. DMart disrupting food retailing case
Pastel analysis. It is one of Asia’s least corrupt nations. Although, in addition to civil
liberties and human rights, some political procedures are inadequate. The image of
DMart disrupting food retailing case Pestel Analysis may suffer as a result of the
workers celebration’s victory in the 2011 election, as this celebration may choose not
to implement the measures.

ECONOMIC FACTORS:

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 DMart’s case for disrupting food retailing Pestel Analysis has skilled personnel and a
strong commitment to conservation. DMart’s case for disrupting food retailing the
port of Pestel Analysis is one of the largest established ports by trade volume and has
a favourable taxing scheme. The country has a strong history and a stable currency.
 Additionally, the country is growing quickly. DMart’s Case for Disrupting Food
Retailing Increasingly, Pestel Analysis depends on export and tourism. It lacks any
resources for fundamental materials. DMart’s Case for Disrupting Food Retailing In a
sense, Pestel Analysis connects the east and west. Numerous commercial prospects
will arise as a result of port development. There may be a risk to the DMart
Disrupting Food Retailing Case Pestel Analysis from other countries like China and
India.

SOCIAL FACTORS:

 For DMart Disrupting Food Retailing, a higher proportion of the younger population
is advantageous because it will give the business a wider consumer population base.
 Additionally, a younger population will guarantee that DMart Disrupting Food
Retailing will have access to human resources and people who are more talented and
educated, expanding the talent pool.
 The size and composition of the household affects how frequently and what kinds of
purchases are made.
 This is crucial for comprehending consumption trends.
 The target market for DMart Disrupting Food Retailing is primarily comprised of
nuclear families with two older children and occasionally a younger child.
 According to consumer research and behavioural evaluations, DMart Disrupting Food
Retailing has incorporated health-related elements into its marketing and added
characteristics to its products that promote health.
 Due to the rise in health consciousness, DMart Disrupting Food Retailing has also
formed partnerships and undertaken CSR projects that emphasise not just physical
health and wellbeing but also mental and emotional wellbeing.

TECHNOLOGICAL FACTORS:

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 Technology is advancing and developing at a rapid pace.

 Businesses like DMart Disrupting Food Retailing are increasingly using technological
advancements and innovation to boost organisational effectiveness and efficiency.
 Due to the rapid rate of innovation across all industries, businesses like DMart
Disrupting Food Retailing are both competitive and forward-thinking.
 Additionally, the upgraded technological infrastructure aids in luring foreign direct
investment, which encourages additional growth and advancement.
 Technology is advancing and developing at a rapid pace.
 Businesses like DMart Disrupting Food Retailing are increasingly using technological
advancements and innovation to boost organisational effectiveness and efficiency.
 Due to the rapid rate of innovation across all industries, businesses like DMart
Disrupting Food Retailing are both competitive and forward-thinking.
 The proportion of young people and people in their middle years is higher than
average.
 These demographic groups rely heavily on social media for connectivity.
 Businesses like DMart Disrupting Food Retailing are increasingly obtaining consumer
data and information through social media.
 High levels of both domestic and foreign investment are made in the nation’s
technological R&D.
 The substantial investment aids in the advancement of industries by providing them
with modern, adaptable, and efficient methods for conducting business and carrying
out other business procedures.
 An accelerated rate of invention has also been made possible by increasing funding
and related research.

ENVIRONMENTAL FACTORS:

 Recycling and environmental sustainability are receiving more attention.

 More and more consumers are demanding ways to recycle things before disposing of
them.
 Consumption of recycled goods is likewise becoming more and more popular with
consumers.
 Specific sites have been developed by DMart Disrupting Food Retailing for the
disposal of products for recycling.
 The nation has strict rules for the management and control of garbage.

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 To be able to follow rules, maintain checks, and prevent any future issues, DMart
Disrupting Food Retailing should affiliate with and register with the waste
management authorities and institutions.
 An increase in the green lifestyle is partly a result of growing environmental
sustainability awareness.
 Consumers in the nation and in all markets are gravitating toward goods and services
that are “green,” or created and promoted in ways that are sustainable and kind to the
environment.
 In an effort to appeal to consumers, businesses are also jumping on the green product
bandwagon and releasing them.
 The nation as a whole is gradually transitioning to using renewable energy for
operations and business activities across all of its industries.
 This is being done to lessen the market’s environmental impact as well as the carbon
effect.

LEGAL FACTORS:

 Health and safety laws:

1. Regarding the health and safety of employees at work, there are stringent
rules.
2. Reputable organisations and groups conduct routine checks with firms to
determine whether safety nets, drills, and other preventative measures are
being implemented at the workplace.
3. The safety and health of employees includes not only their physical health but
also their emotional and mental health.
4. The safety and health of its employees is of utmost significance to DMart
Disrupting Food Retailing, and the company works tirelessly to make
improvements.

 Employment laws:
1. Legal employment contracts must be created by enterprises in accordance with
national legislation. These agreements, which are approved by respected
governmental organisations, include all facets of employment.
2. Employability agreements guarantee good communication and prevent
miscommunication or collusion between all parties.

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3. When hiring new staff, DMart Disrupting Food Retailing informs them of the
applicable employment laws.
4. The HR department at DMart Disrupting Food Retailing also holds workshops
and training sessions for staff members on a regular basis to engage them and
educate them on employment regulations and other legal requirements.

 Anti-discrimination laws:
1. The population of the nation and the market is diverse.
2. There are many immigrants, and companies from the country run operations in
many foreign countries.
3. As a result, DMart Disrupting Food Retailing has always been open to having
a diverse workforce and has created internal corporate policies that foster
diversity.
4. The business adheres to anti-discrimination laws in all of its operations, from
hiring to promoting.
5. Every employee participates in diversity trainings and workshops on a regular
basis to learn how to avoid discriminatory and biased acts, which could have
serious consequences.
6. Like other players in the sector, DMart Disrupting Food Retailing is an equal
opportunity employer.
7. Additionally, DMart Disrupting Food Retailing makes sure that there is no
discrimination at work and that the workplace culture is always positive.
8. By adhering to anti-discrimination legal restrictions and routinely investing in
employee development programmes, DMart Disrupting Food Retailing makes
sure of this.

COMPETITORS of DMart

The Indian retail segment is one of the fastest-growing and least tapped segment. Overall, the
retail market is highly unorganized and as we know that India is a developing country and the
youngest country, it is observed that the retail segment is something that can become the next
big thing. 
Companies such as Reliance Industries Limited & Amazon India are going head-to-head in
acquiring the Future Group (The company that runs Big Bazaar, Brand Factory stores in
India). 

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Also, there’s a huge challenge coming up for DMart as JIO MART is coming up with its
new strategy of building India’s biggest retail chain by giving distributorship to local store
owners!

STOCK ANALYSIS
(As on 11/12/2022)

 Market Cap = ₹ 259,265 Cr.

 Current Price = ₹ 4,002
 High / Low = ₹ 4,872 / 3,185
 Stock P/E = 112
 Book Value = ₹ 232
 Dividend Yield = 0.00 %
 ROCE = 15.8 %
 ROE = 11.5 %
 Face Value = ₹ 10.0

STOCK PRICE: (Last 3 years)

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Figure 5: Source: Screener

DMart’s stock has given massive returns of 135% in last 3 years. (YoY= 45%). In this period,
the stock also hit its all-time high which was 5900 Rs. The average volume being traded
moved roughly around 700k to 800k daily.

STOCK PRICE: (max)

Figure 6: Source: Screener

Being issued at the price band of 295-299, this multi-bagger stock turned out to be one of the
blue-chip stocks of NSE and ruled over retail industry. Those who were allotted the initially
publicly offered shares @ of 15,000 Rs., the net worth of that would have gone up to
2,00,000 Rs. Which comes down to 1233% return in just 5 years (YoY=246%).

SHARE HOLDING PATTERN: (As on Sept,2022)

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Figure 7: Source: Economic Times

PROs:

 Company is almost debt free.

 Company is expected to give good quarter
 Company has delivered good profit growth of 25.8% CAGR over last 5 years
 Company's median sales growth is 33.1% of last 10 years

CONs:

 Stock is trading at 17.3 times its book value

 Though the company is reporting repeated profits, it is not paying out dividend
 Company has a low return on equity of 11.8% over last 3 years.

MY RECOMMENDATION:

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Investors, in my opinion, should strongly buy this stock. The main reason behind this being
the retail market of India is expected to be 1.7 trillion and DMart just has the Market Cap of
2,50,000 Cr yet which easily shows still a huge gap to fill in and by seeing DMart grow
aggressively in the retail sector of India, the stock has way far to go.

COMPANY ANALYSIS: DMART