DMART (Avenue Supermarts Ltd) vs BSE Sensex 30 Comparison

DMART

BSE Sensex 30

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DMART

BSE Sensex 30

Difference

1Y 3Y 5Y 10Y 15Y 20Y

DMART

BSE Sensex 30

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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BSE Sensex 30

DMART

ATD

3382

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Avenue Supermarts Ltd
Glance View

Economic Moat

None

Market Cap

2.4T INR

Industry

Retail

Avenue Supermarts Ltd., the owner and operator of the popular DMart chain, emerged on the Indian retail landscape with a unique business model that has become a textbook case of operational efficiency and consumer appeal. Founded by Radhakishan Damani in 2000, the company’s inception was defined by a keen understanding of middle-class India’s shopping psyche. By focusing on densely populated urban and suburban areas, DMart built its reputation as a low-cost provider of essential goods. Their stores are a treasure trove of groceries, household staples, and personal care items sold at competitive prices. This strategic emphasis on core, fast-moving consumer goods, coupled with a no-frills approach to store design and operations, enables Avenue Supermarts to maintain lean margins while driving high volumes of sales. Every facet of their operation is finely tuned for efficiency— from sourcing and supply chain management to in-store inventory practices—enhancing their ability to offer discounts that consistently draw consumers into their brick-and-mortar outlets. Financially, Avenue Supermarts’ profitability hinges on executing the art of quick inventory turnover and cash flow management. The company typically purchases goods in bulk, directly negotiating with manufacturers to secure lower prices and better terms. This allows them to pass on savings to customers, thereby strengthening loyalty and repeat business. Additionally, their focus on self-owned stores, rather than leasing, reduces fixed costs and shields them from rental inflation, permitting long-term cost competitiveness. As a result, Avenue Supermarts generates revenue primarily through high sales volumes, underpinned by a fundamental business strategy that intertwines cost leadership with frugality and customer satisfaction. Their successful model illustrates how understanding and executing fundamental retail principles can create a robust marketplace presence, capturing both the hearts and wallets of a diverse consumer base across India's sprawling urban landscapes.

View DMART Analysis

DMART Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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ZA	S	Shoprite Holdings Ltd JSE:SHP	Select
CA		Alimentation Couche-Tard Inc TSX:ATD	Select
US		Kroger Co NYSE:KR	Select
CA		Loblaw Companies Ltd TSX:L	Select
JP		Seven & i Holdings Co Ltd TSE:3382	Select
ZA	P	Pick N Pay Stores Ltd JSE:PIK	Select
NL		Koninklijke Ahold Delhaize NV AEX:AD	Select
UK		Tesco PLC LSE:TSCO	Select
AU		Woolworths Group Ltd ASX:WOW	Select
CA		George Weston Ltd TSX:WN	Select

ZA	S	Shoprite Holdings Ltd JSE:SHP	Add
CA		Alimentation Couche-Tard Inc TSX:ATD	Add
US		Kroger Co NYSE:KR	Add
CA		Loblaw Companies Ltd TSX:L	Add
JP		Seven & i Holdings Co Ltd TSE:3382	Add
ZA	P	Pick N Pay Stores Ltd JSE:PIK	Add
NL		Koninklijke Ahold Delhaize NV AEX:AD	Add
UK		Tesco PLC LSE:TSCO	Add
AU		Woolworths Group Ltd ASX:WOW	Add
CA		George Weston Ltd TSX:WN	Add

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IN		Jio Financial Services Ltd NSE:JIOFIN	Add

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DMART

vs

BSE Sensex 30

Stocks Performance
DMART vs BSE Sensex 30

Performance Gap
DMART vs BSE Sensex 30

Performance By Year
DMART vs BSE Sensex 30

Competitors Performance
Avenue Supermarts Ltd vs Peers

Avenue Supermarts Ltd
Glance View

Company

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DMART vs BSE Sensex 30

Stocks Performance DMART vs BSE Sensex 30

Performance Gap DMART vs BSE Sensex 30

Performance By Year DMART vs BSE Sensex 30

Competitors Performance Avenue Supermarts Ltd vs Peers

Avenue Supermarts Ltd Glance View

Company

Help

Tools

Stocks

DMART

vs

BSE Sensex 30

Stocks Performance
DMART vs BSE Sensex 30

Performance Gap
DMART vs BSE Sensex 30

Performance By Year
DMART vs BSE Sensex 30

Competitors Performance
Avenue Supermarts Ltd vs Peers

Avenue Supermarts Ltd
Glance View