INSTITUTE OF INNOVATION IN TECHNOLOGY AND MANAGEMENT

FINANCIAL ANALYSIS PROJECT

BBA

Submitted To: Submitted By:

Ms.Bharti Arora Name:Aniket Panwar &

Chinmaya Mohanty
 IINTM Rollno : 09824401719 &
03324401719

Class & section: BBA E2 &BBA E1

OVERVIEW

DMart is a one-stop supermarket chain that aims to offer customers

a wide range of basic home and personal products under one roof.
Each DMart store stocks home utility products - including food,
toiletries, beauty products, garments, kitchenware, bed and bath
linen, home appliances and more - available at competitive prices
that our customers appreciate. Our core objective is to offer
customers good products at great value.

DMart was started by Mr. Radhakishan Damani and his family to

address the growing needs of the Indian family. From the launch of
its first store in Powai in 2002, DMart today has a well-established
presence in 238 locations across Maharashtra, Gujarat, Andhra
Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR,
Tamil Nadu, Punjab and Rajasthan. With our mission to be the lowest
priced retailer in the regions we operate, our business continues to
grow with new locations planned in more cities.

The supermarket chain of DMart stores is owned and operated by

Avenue Supermarts Ltd. (ASL). The company has its headquarters in
Mumbai.
* The brands D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch
Harbour, etc are brands owned by ASL.

DMart remains well-placed in the domestic retail industry given its

strong execution capabilities, disciplined strategy, lower cost of
operation and streamlined distribution network

The company, backed by Radhakishan Damani, one of India’s richest

men, has made strong gains so far. Shares more than doubled on the
listing day four years ago, and has grown 800 percent from its issue
price of Rs 299. It was listed at Rs 604 on March 21, 2017.

Experts say DMart has the potential to deliver 20 percent CAGR on its
earnings for two decades, giving a good opportunity for long-term
wealth creation to investors who missed the initial rally.

“We believe, DMart stock is a 100 bagger, even from the current price,
over the next 25years. This company has the potential of
compounding EPS at +28 percent CAGR over FY21-46E

D-Mart might look expensive when compared to its peers, but experts
feel that the valuations are justified and it will continue to attract
premium valuations in the near future as well.

“The stock is expensive but has value in its business. Its journey from
two stores in the state of Maharashtra and has 170+ stores across 12
states in India by FY20, the extent at which DMart has grown in the
last 10 years is commendable,”

Revenue breakup 

The company derives 52% of the revenue from Food segment, 20%
from the FMCG segment and the remaining is contributed by the
General Merchandise and Apparel segment. The company Sales
revenue per retail business per square ft is Rs 32,879 for FY20 
Steady Store network expansion 
DMart’s core business model is driven by Value retailing and the
company has opened 38 new stores in the FY20 and the company is
focusing on penetrating into Tier 2 & 3 cities where there is a absence
of Organized large retailing.

Raising of funds 
Avenue Supermarts raised 4098 Cr via QIP at an issue price of Rs.
2,049 on 11th February, 2020. The funds raised will be used for future
expansion and partial repayment of the existing debts.

Further, the founder Radha Krishnan Damani sold 2.28% stake on Feb

17, 2020 through OFS to comply with the Minimum public shareholding
mandate and consequently, the promoter group hold 74.99% stake in
the company 

Sales are increasing every year company profits are also increasing
every year and provide good returns to investors it was a sector
leader and we will see dmart make more for their inverstor in future
it has that potential