⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DMART - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | DMART | Market Cap | 2,50,025 Cr. | Current Price | 3,842 ₹ | High / Low | 4,950 ₹ |
| Stock P/E | 80.2 | Book Value | 366 ₹ | Dividend Yield | 0.00 % | ROCE | 18.4 % |
| ROE | 14.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,861 ₹ | DMA 200 | 4,014 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | -0.19 % | PAT Qtr | 923 Cr. | PAT Prev Qtr | 747 Cr. |
| RSI | 48.8 | MACD | 1.81 | Volume | 4,89,495 | Avg Vol 1Wk | 4,95,696 |
| Low price | 3,529 ₹ | High price | 4,950 ₹ | PEG Ratio | 3.69 | Debt to equity | 0.06 |
| 52w Index | 22.0 % | Qtr Profit Var | 17.6 % | EPS | 47.9 ₹ | Industry PE | 39.3 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from 747 Cr. to 923 Cr. (+17.6%), showing healthy growth.
- Margins & Returns: ROCE (18.4%) and ROE (14.0%) are decent but not exceptional.
- Debt: Debt-to-equity ratio at 0.06, indicating very low leverage.
- Cash Flow: EPS at 47.9 ₹, consistent earnings profile.
💹 Valuation Metrics
- P/E Ratio: 80.2 vs Industry PE of 39.3 → Highly overvalued.
- P/B Ratio: Current Price ₹3,842 vs Book Value ₹366 → Stretched valuation.
- PEG Ratio: 3.69 → Suggests poor valuation relative to growth.
- Intrinsic Value: Current price far above fair value zone.
🏢 Business Model & Competitive Advantage
- Strong retail presence with a proven low-cost, high-volume model.
- Efficient operations and brand loyalty drive consistent demand.
- However, valuations are stretched, limiting near-term upside.
📈 Entry Zone Recommendation
- Technicals: RSI at 48.8 (neutral), MACD positive, price near 50DMA & 200DMA.
- Suggested entry zone: ₹3,300–₹3,500 if correction occurs.
- Long-term holding viable given strong business fundamentals, but only at reasonable valuations.
✅ Positive
- Strong quarterly profit growth (+17.6%).
- Debt-to-equity ratio very low (0.06).
- Robust retail business model with consistent demand.
⚠️ Limitation
- High P/E ratio (80.2) compared to industry average.
- Valuation multiples stretched (P/B ratio high).
- No dividend yield (0.00%).
📉 Company Negative News
- FII holding reduced (-0.02%).
- DII holding reduced (-0.19%).
📈 Company Positive News
- Quarterly profits improved significantly.
- Strong operational efficiency and brand loyalty.
🏭 Industry
- Industry PE at 39.3, much lower than company’s 80.2.
- Retail sector stable with long-term growth potential.
🔎 Conclusion
- DMart has strong fundamentals and a proven business model but trades at unsustainable valuations.
- Profit growth is healthy, but multiples are stretched compared to peers.
- Best strategy: Wait for correction towards ₹3,300–₹3,500 before entry.
- Long-term holding viable only if valuations normalize and earnings growth sustains.