Retail company DMart’s prices surged 1.6% to reach an all-time high of Rs. 3,909.50 on BSE on Friday. The price hike comes a day after the company’s market capitalization reached Rs. 2.5 lakh crore mark.
Dmart, also known as Avenue Supermarts became the 17th largest company in the Indian market. It is now ahead of Axis Bank, L&T, UltraTech, Maruti Suzuki, and Nestle.
Varun Singh, FMCG, and Retail Analyst at Mumbai-based brokerage IDBI Capital Markets & Securities told CNBC, “During periods of high inflation, DMart is likely to gain more share from both general trade and online players due to significant price advantage.” He also said that he expects DMart to become a 100 bagger stock in the next 25 years.
The company earned a net profit of Rs. 115 crore for Q1 FY22, as compared to Rs. 50 crore in the corresponding quarter of last year.
Speaking about the results, Neville Noronha, CEO & Managing Director, Avenue Supermarts said, “Q1 FY 2021-22 saw a much stronger second wave of Covid-19 restrictions. We lost significantly more days or had a higher restriction on a number of hours of store operations compared to the same period last year.”
According to CNBC, DMart shares have risen 39 per cent so far this year, easily beating the 17 per cent return of the headline Sensex index.