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Increasing competition may restrict Avenue Supermarts' stock performance

Cost efficiency provides DMart an edge, but competitive intensity is rising and stock valuations are expensive

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For now, many analysts are not majorly worried and believe that the impact may not be significant for DMart given its strong moat.

Shreepad S Aute Mumbai

4 min read Last Updated : Jul 20 2020 | 5:29 PM IST

Reliance Industries’ announcement relating to its retail business, Reliance Retail, which includes its online grocery business JioMart, has impacted investor sentiment towards Avenue Supermarts.

The stock of Avenue Supermarts, which operates the popular chain of DMart hypermarkets, has shed 6 per cent since last Wednesday (July 15), adding to the 7.6 per cent decline it had seen post weak results (between July 11-14).

In comparison, the Sensex has scaled to an over four-month high and is up 2.3 per cent since 11 July.

At the annual general meeting last Wednesday, Reliance Industries' (RIL's) chairman and managing director, Mukesh Ambani announced that RIL has

Topics : Avenue Supermarts

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