Industry Profile: By 2018, the Indian retail sector will likely grow at a CAGR of 13 percent to reach US$ 950 billion. The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 percent of the country’s Gross Domestic Product (GDP) and around 8 percent of the employment. India is the world’s fifth-largest global destination in the retail space.
Indian Retail Industry has immense potential as India has the second-largest population with an affluent middle class, rapid urbanization, and solid growth of the internet.
India’s retail market is expected to increase by 60 percent to reach US$ 1.1 trillion by 2020, on the back of factors like rising incomes and lifestyle changes by the middle class and increased digital connectivity. While the overall retail market is expected to grow 12 percent per annum, modern trade would expand twice as fast as 20 percent per annum and traditional trade at 10 percent. Indian retail market is divided into “Organised Retail Market” valued at $60 billion, which is only 9 percent of the entire sector, and “Unorganised Retail Market constitutes the rest 91 percent of the industry.
Company profile: The company owns the Famous DMart retail store. The company offers food products, including staples, groceries, fruits and vegetables, snacks and processed foods, dairy and frozen products, beverages, and confectionery; non-food products comprising home care products, personal care, toiletries, and other over-the-counter products; and general merchandise and apparel products, such as bed and bath products, home appliances, crockery, utensils, plastic goods, garments, and footwear. September 30, 2017, had 136 stores, 23 distribution centers, and five packing centers.
Shareholding Pattern: BSE Data
Financials and ratios : [table id=108 /]
Future prospectus: Consumption is one significant part of the Indian economy. Companies like D mart, big bazaar, and Shoppers Stop play a prominent role, and still, there is considerable scope. Even though some companies like Flipkart and Amazon, but Speed of internet and infrastructure for logistics are absent. ‘The last mile of logistics is still in the early stages. However, the increasing trend of per capita income is helping the company to increase its footprint. A company like Dmart, which is keeping excellent corporate governance and low debt level, is a fantastic opportunity. Even though the company’s valuation is high, it is giving opportunity.
