DMART Share Price: Radhakishan Damani's Largest Stock DROPS 4% After Weak Q4; Buy-On-Dips?

DMART share price: Radhakishan Damani, who is India's largest ace investor, has the majority of his income coming from his retail chain company, DMART. On May 5th, Damani lost substantially after DMART's share price plunged sharply by 4%. Despite posting growth in Q4FY25, Avenue Supermarts, the parent company of DMART, recorded weak performance.

"Avenue Supermarts (DMART) posted weak results in 4QFY25 as standalone EBITDA inched up 4% YoY (9% miss) due to weaker gross margin (GM; -25bp YoY) and higher cost of retailing (CoR; opex up 12% YoY on a per sqft basis)," said analysts at Motilal Oswal in their note dated May 5th.

DMART Share Price:

At the time of writing, DMART's stock price dropped by 3.09% to trade at Rs 3935 apiece on BSE, taking its market valuation to Rs 2,56,063.46 crore. In the opening bell though, the stock dipped by 3.6% to hit an intraday low of Rs 3915.75 apiece.

Radhakishan holds 14,98,48,238 equity shares or 23.03% stake in Avenue Supermarts, which trades as a DMART symbol. He is the largest investor in the company under the promoter group.

Avenue Supermarts Q4 Results:

During the fourth quarter, Avenue Supermarts reported 2.6% YoY growth in standalone net profit to Rs 620 crore, while total revenue surged by 16.7% YoY to Rs 14,462 crore. EBITDA climbed by 4.4% YoY to Rs 981 crore. DMart opened about 28 stores in Q4FY25.

On the consolidated front, net Profit stood at Rs. 551 crore for Q4FY25, as compared to Rs. 563 crore in the corresponding quarter of last year. PAT margin stood at 3.7% in Q4FY25 as compared to 4.4% in Q4FY24. Total Revenue for the quarter ended March 31, 2025, stood at Rs.14,872 crore, as compared to Rs.12,727 crore in the same period last year.

Meanwhile, FY25 revenue surged by 16.7% YoY to Rs 57,790 crore, and net profit climbed by 8.6% YoY to Rs 2,927 crore. The company added 50 stores between the 2024-25 financial year.

BUY DMART Stock?

Given the recent fundraising by the top 3 QC players and the entry of large offline/online retailers into quick commerce, the competitive intensity is likely to remain elevated in the near term, as per the brokerage.

Adding Motilal's analysts said, "We believe DMART's value-focused model and superior store economics would ensure its competitiveness and customer relevance despite QC's convenience-focused model over the longer term. However, rising competition on pricing could weigh on DMART's growth and margins at least in the near term."

That being said, the analysts trimmed their FY26-27E EBITDA estimate by ~5% each due to heightened competitive intensity and rising CoR, while its FY26-27E EPS is cut by ~6-8%. Motilal's expert said, "We build in a CAGR of 17%/17%/15% in DMART's console. Revenue/EBITDA/PAT over FY25-27E."

Lastly, they added, "We assign a ~46x FY27 EV/EBITDA multiple (implying ~79x FY27 P/E) to arrive at our revised TP of INR4,350. We reiterate our BUY rating on DMART."

About Avenue Supermarts:

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.

DMart was started by 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 currently has a well-established presence in 415 locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan.