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DMART - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.6

Last Updated Time : 03 Feb 26, 07:53 pm

Fundamental Rating: 3.6

Stock Code DMART Market Cap 2,45,792 Cr. Current Price 3,777 ₹ High / Low 4,950 ₹
Stock P/E 78.8 Book Value 366 ₹ Dividend Yield 0.00 % ROCE 18.4 %
ROE 14.0 % Face Value 10.0 ₹ DMA 50 3,828 ₹ DMA 200 4,063 ₹
Chg in FII Hold -0.02 % Chg in DII Hold -0.19 % PAT Qtr 923 Cr. PAT Prev Qtr 747 Cr.
RSI 44.0 MACD -45.4 Volume 2,16,841 Avg Vol 1Wk 3,70,840
Low price 3,337 ₹ High price 4,950 ₹ PEG Ratio 3.63 Debt to equity 0.06
52w Index 27.3 % Qtr Profit Var 17.6 % EPS 47.9 ₹ Industry PE 38.9

📊 Core Financials

  • Revenue & Profitability: Quarterly PAT rose to 923 Cr. from 747 Cr., showing healthy growth. EPS stands at 47.9 ₹.
  • Margins: ROCE at 18.4% and ROE at 14.0% indicate moderate efficiency and profitability.
  • Debt: Debt-to-equity ratio of 0.06 reflects very low leverage, enhancing financial stability.
  • Cash Flow: Consistent profitability supports strong operational cash generation.

💹 Valuation Indicators

  • P/E Ratio: 78.8, significantly higher than industry average of 38.9, suggesting overvaluation.
  • P/B Ratio: Current price (3777 ₹) vs. book value (366 ₹) shows steep premium.
  • PEG Ratio: 3.63, indicating growth does not fully justify valuation multiples.
  • Intrinsic Value: Current market price appears stretched compared to fundamentals.

🏢 Business Model & Competitive Advantage

  • Strong retail presence with focus on value-driven supermarket model.
  • Efficient supply chain and cost management provide competitive edge.
  • Brand loyalty and scale advantage support long-term sustainability.

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive accumulation range lies between 3,400–3,600 ₹, given current overvaluation.
  • Long-Term Holding: Suitable for investors seeking exposure to retail growth, but entry should be closer to fair value for better returns.


✅ Positive

  • Quarterly PAT growth of 17.6% shows strong earnings momentum.
  • Low debt-to-equity ratio (0.06) enhances financial resilience.
  • Strong brand presence and efficient operations in retail sector.

⚠️ Limitation

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