Q-comm rapid growth weighs on DMart, stock falls over 8%

MUMBAI: The stock price of Avenue Supermarts, which owns DMart, fell 8.4% on Monday on the back of subdued performance in Q2. Stiff competition from quick commerce platforms like Blinkit, Swiggy Instamart and Zepto in large metros has impacted the growth, analysts said. DMart‘s year-on-year consolidated revenue growth of 14% in Q2 was slower than its 18-20% revenue growth in the past few quarters, brokerages said. Morgan Stanley and JPMorgan downgraded DMart.
Quick commerce platforms deliver groceries, household essentials and a range of non-grocery items to consumers at their doorstep in 10 minutes, nudging more people to sign up for the services. Tnn