I checked price of most of items on Jiomart - It is lower than D-mart (https://www.jiomart.com/) Looking at Jiomart competition (after joining hands with whats app/Facebook) lets have your views on following -
(1) How the EBITA margin and growth of D-mart will sustain going forward?
(2) Consumer behavior after COVID-19 -“Buy more online than visiting physical store”, will have more benefits to Jiiomart than D-mart.
(3) Increasing efficiency of order collection and distribution through new Jio platform with whatsapp. - How it will impact D-mart?
One should be cautions about Reliance’s execution and competition killing capacity. When reliance launched Jio, existing telecom players did not take it seriously but now many wiped out from the market!!. Will similar could happen for jiomart?
One thing is sure - there will not be free run for D-mart. Current valuation of D-mart is for its Quality Growth with strong balance sheet. However, if going forward, growth slows down, margin contract, PE will get de-rerated / there will not be significant return from investment in D-mart due to long period of consolidation in stock price!
(Disc - Invested during IPO time, sold last week. Now no holding. Hence, my view might be biased !!)