Tobmy understanding each store is being opening after carefully scanning footfall/catchment area/logistics/capital cost/demography/customer profile and many other factors. Its not like a bank which can keep adding branches quickly.In my opinion, 12-15 stores a year would be a factual figure.There sales are increasing by about 25%yoy. Here too we will have to accommodate the base effect and accordingly, the growth rate may come down after few years
I just checked the equity capital post QIP and find that QIP proceeds are accruing to the company.I stand corrected and many thanks
Please check and correct.
Moreover if I keep the growth rate in store addition at 40% per year for next 5 years, still they canât get no mentioned. Please note that growth rate in store addition has never achieved 40% per annum even when they raised money through IPO.
stock shifted to T2TâŚstrange
What does T2T means?
Trade to trade - no intraday, delivery only
Is it good or bad for stock?
Or it doesnât matter?
Anyway stock is not in derivative, so speculation is limited only.
It depends upon your approach.
If you are an investor then it doesnât matter even if market closes for sometime.
If you are a trader or speculator then you cannot short the falling stock in intraday.
I agree
But i want to know what will be the effect of this t2t on dmart stock?
It is not possible to guess stock price movements with absolute certainty. Volume and volatility may reduce. That means one will need legitimate buyers if he wants to panic sell.
I would advise you to not take investing decisions on the basis of stock price movements and technicalities of the market. Invest or stay invested only on the basis of your conviction.
Disclosure - invested
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worthwhile to read this article on T2T criterion:
Basically T2T happens on the following basis:
I think high PE and high deviation from FMCG index might be the reason for this action.
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Came across this last yearâs article, good read
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The Company can be hugely impacted by CORONA virus out break. I am visualising a deep correction in stock price. Once CORONA threat is out there, foot falls in malls, stores and Cinema hall will fall drastically. Same is true for other stocks like PVR,IONOX etc⌠it would be better to stay away from such stocks till things stablises.
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What i observed in Middle east Malls, movies, parks etc. has significant down fall in the foot falls, however the supermarket specially with the discounted ones like Lulu has seen people coming & loading up with groceries just in case if there is shortage due to outbreak. They are loading for a month of goods or so, specially many avoiding the meat. I was talking to the store manager and he referred some of the old stocks such as shelf life milk, sanitizers, paper rolls etc. are moving very fast. I have a strong feeling DMART will see similar situation. I could be wrong.
Disc: Invested.
Thanks,
Kumar
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DMART will always do better during economic slowdown and force majeure situations as its during those periods that SAVINGS matter the most to the consumers
DMARTâs big brother from another mother WALMART thrived during 2008 and in 2019
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Competition is coming⌠Low cost is a moat but what if someone else also able to build it
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Sir, one thing to add on your concern: Dmartâs target segment is lower middle class as well middle-middle class; so hardly it will make impact on footfalls in store. Just that footfalls will become more cautious.
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There is a sense in the markets that decline in footfalls will lead to severe slowdown in sales. One needs to think from the mindset of business owner as well. When negative developments take place, good businesses mould themself with changing times. Companies with deep pockets and zero leverage can afford to amend sales channels - from offline to online etc, doorstep delivery etc.
During demonetization, many estimated serious disruptions in the supply chains due to unacceptability of cash which didnât happen to the extent expected. Various strong businesses came out of crisis by increasing debtor days, delaying settlement of payments, offering discounts etc.
A transaction takes place when buyer and seller have willingness to exchange goods for mutually agreed price. Until such willingness exist, business is going to be as usual. Such intent vanishes normally during economic crisis when buyer already in short of money, cancels all purchases, while the seller who is already running on losses, decides to ramp down production and ultimately sales.
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