DMart Ready Retains Competitive Advantage, Says Prabhudas Lilladher
The price gap between DMart Ready and Big Basket increased for 60% of products, while for Jiomart the trend was mixed
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
We analysed price trend of 125 products across Avenue Supermarts Ltd.'s DMart Ready, Jiomart and Big Basket in key consumer categories of loose grocery items, dairy, packaged food, beverages, personal care and home care.
We observed that out of 125 products that we compared, the price gap between DMart Ready and Big Basket increased for 60% of products, while for Jiomart the trend was mixed with 29%/44% of products seeing gap increase/decrease.
Gap between DMart Ready/Big Basket increased for most products in August 2023 versus reduction we saw in May 2023, while for DMart Ready/Jiomart the trend was mixed.
Although e-commerce in grocery and food is witnessing a shift towards quick commerce, DMart continues to remain most competitive in non-quick commerce segment led by-
increase in price gap between DMart Ready/Big Basket,
rising consumer activations and advertising by DMart Ready and
increase in delivery charges/higher cart value for free delivery by other channels.
We expect DMart Ready to sustain strong growth and competitiveness due to advantages in sourcing and economies of scale.
We expect sales of Rs 48 billion with Ebitda loss of Rs 24 million by FY26. Retain ‘Buy’ with discounted cash flow based target price of Rs 4574.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.