In spite of the overall consumption slowdown, DMART continued to deliver another strong quarter with revenue/EBITDA/PAT growing 24%/26%/55% YoY in Q3.

Company added 7 stores to reach 196 stores in 3QFY20.

For 9MFY20, same store sales growth (SSSG) was in low double digit vs. 18% in FY19. Slowing SSSG indicates weak consumer demand which could drag earnings.

DMART’s capex/sq-ft has increased continuously in the last 4 years and has doubled to Rs.12000/sq-ft which coupled with slowing SSSG could affect its return profile.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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