Avenue Supermarts, which owns and operates the retail chain DMart, has raced past bluechips like Maruti Suzuki, Larsen and Toubro (L&T), UltraTech Cement and ONGC in terms of market capitalisation.
The Radhakishan Damani-promoted company brags a market cap of over Rs. 2.17 lakh crore, making it the 17th most valued company in India after Axis Bank.
It is worth mentioning here that during the FY21, general merchandise, home furnishing and apparels formed 22.90 per cent of total revenue of DMart; however, it was 27.31 per cent in FY20.
The retail giant, having 234 operating stores with retail business area of 8.82 million sq. ft., offers a wide range of products with a focus on foods and FMCG.
It can be mentioned here that Damani’s wealth has crossed the US $18 billion mark, making him the sixth richest Indian. His wealth has increased by US $ 3.1 billion since 1 January 2021.
The company’s strategy focuses on sourcing goods at competitive prices using operational and distribution efficiencies. It also provides decent discounts throughout the year, giving it an edge above its peers.
At the same time, the focus of DMart shifted to e-commerce business amidst the lockdown and pandemic-related curbs.
The company reported a 52.76 per cent Y-o-Y increase in consolidated net profit at Rs. 414 crore for March quarter. The chain of hypermarkets had reported a net profit of Rs. 271 crore in the corresponding quarter of last year.