Aman ji,
IMO - bang on statement
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Q3 updates are out; we Have to Watch out Margins and SSSG, but apart from that
If you look at the trajectory jumping from âš11k Cr in 2022 to over âš17k Cr today, it pretty much crushes the idea that physical retail is dying. To me, it just proves that only mediocre retail is dead.
But the part thatâs actually kind of scary? Theyâre pulling these huge numbers with just 442 stores. In a country of billions. That consistent growth, adding roughly âš2,000 Cr to the topline every year, thatâs not luck. Itâs pure execution.
Feels like weâre watching a titan being built in slow motion.
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Only concern, sales growth is slowing down year after year. From 17% to 15% and now 13%
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Base is getting big and apart from that quick commerce is taking a part of the industry but again my view would be same, once the dust settles and profitability emerges DMART will enter in quick commerce. Off course it wonât become market leader / disruptor right away but it will chip in slowly as we know the execution capabilities of DMARTâs management.
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Just sharing some thoughts:
There are two main sustainable models of trade: value for money and proximity (convenience).
Value for money: DMart, Reliance Retail
Proximity or convenience: General trade (GT) and quick commerce
Web commerce players like Amazon and Flipkart fall somewhere in between and currently seem somewhat confused.
It is difficult for any player to offer both value and proximity at the same time due to the underlying cost structure. A business can realistically excel at one, but not both.
Hence Dmart success is brick and morter store not ecommerece or QC.
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very well articulated but if a company wants to diversify as it has pretty good diversification then this type of diversification (quick commerce) makes sense because it is a related diversification.
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Devenbhai,
First of all thanks for putting it on the radar 2-3 months back. I have looked at this off and on and especially last 1 week.
From my perspective and understanding of what Neville says is they are really not hyperfocussed on e-com. They are still playing around and figuring out the right strategy. I guess focus for next 2-3 years would be NCR/UP.
When i checked thier smallest towns they operate in it was a 1-1.5 Lakh population town. Now, India has 300 towns that have a population of 1 Lakh plus. If you read around the words, this is where Dmart is focused, especially in the North.
If you look at it that way, Dmart is way underprenetated where Qcom and the likes of Amazon donât reach because pricing is a concern.
Just my 2 cents. Still looking at it.
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That is the biggest opportunity. Bihar, Jharkhand, UP, and West Bengal
Also, elections are Round the Corner in WB and UP
Whats the source for this. Any communication from company
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@hardik_shah1 I donât know which source exactly you are looking for, but these articles will help you understand. There is no official communication from the company.
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Looks like, DMart is selling books, at least through dmart.in and app. There is a Books Section. I have not seen books in the nearby DMart store.
A quick sampling shows that the prices are cheaper than amazon. But yeah, the selection may not be as exhaustive, for now.
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Donât know the author - no link, liked it hence sharing.
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wow what a read! specially all comments from Neville. Lots to learn and it seemed like not just reading thoughts of a seasoned CEO of a retail company but rather those of a seasoned Investor (top of value chain) as wellâŚ
While I read, I had thoughts of how this unique thinking & culture of the company will be passed on to future leaderships. This was partly answered in end when Neville mentioned that in first year, they do not give targets but rather make the new comer soak into the unique culture & business model. Rare, specially in an Indian comany.
Neville is moving out from CEO role in Feb 2026, again a rare thing of having almost an year of overlap with next CEO designateâŚsomething I had noticed in maybe some Tata group company or L&T earlierâŚbig enough period for culture to soak inâŚ
Still, people do ideate (not meaning anyone in particular but can be anyone in very distant future as well), some out of compulsion and some out of beliefâŚmy query here is how does one ensures that this unique business model & culture of dmart remains even when likes of Neville & significant others move outâŚNeville does own significant value of dmart stocks so would he remain in an overseing role in future? Also, what role does Mr. Damani play in driving this business model & culture as on todayâŚif anyone has insights, would be good to know.
Disc. Core holding hence biased. Not a buy/sell recommendation. Not eligible for any advice. Post only for learning purposes and I can be wrong in all my assessments.
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LTM Standalone EPS around 48, at current market price PE is 79, which is almost lowest since listing.
Once inflation increases to normal & new store opening accelerate as promised by company, revenue growth is also expected to increase.
And some point, these quick delivery companies will also stabilize & do business for profit.
So, may be bottom is done. Aage, market sabse uppar.
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