Demart, a supermarket-hypermarket chain, is one of the few profitable retail companies in the field. The company, which manages the supply chain well, pays special attention to maintaining profitability.
The company sells a wide range of products, including consumer goods, grocery, personal care, home care, kitchenware, home appliances and furniture. The company plans to open 25-30 new stores in the next two fiscal years.
Companies in the organised retail sector, which has suffered setbacks for a variety of reasons, are on the path to a recovery. The Indian retail business, which has struggled to stay afloat for 15-20 years, is slowly improving. Some of the leading companies in this field are turning to abrupt change. Demart is one of the last retail companies to face the setbacks of the COVID era. This opens up new opportunities for equity investors.
Factors such as high level of industrialisation, growth of the service sector, and improved employment opportunities have led to an increase in people’s affordable income. This has led to new lifestyles and changes in consumption patterns. All these have opened up new opportunities for the retail market in India.
The company had posted a net profit of Rs.199 crore in the July – September quarter of the current fiscal. This is despite the decline in profits compared to the second quarter of the previous year. The company had a revenue of Rs.5,306 crore. The company expects to continue to focus on revenue growth rather than improving margins.
For the current financial year, Demart’s share price is expected to be Rs 3,010. Demart is an ideal stock for high risk investors.
