BM used to talk of simple equation that
1. Company should have high growth
2. Growth should be funded by internal accurals(i.e. ROCE > Growth Rate)
Dmart has high growth but not great ROCE compared to growth. I guess thats reason why they used IPO to fund future growth. Is there any indications of DMart adopting asset light model like online order(as mentioned in this thread about selective areas in Mumbai) or Franchise model ? Becauze wrt current capital intensive approach, they look more like Real Estate investment company.
Moreover, currently company saves on rental cost becauze of past real estate investment which boosts margin. But that means in order to grow further their margin from future stores will be lesser.
Ofcouse Promoters are smart/domain expert AND maybe that matters a lot than analysis-paralysis by amateur like me.
But just thought of adding this question regarding future growth funding(and I am not at all talking about valuation)