The stock of India's largest listed pure-play retail company, Avenue Supermarts (DMart), has slipped over 10 per cent from its monthly highs. A weak operational performance in the fourth quarter (January-March) of financial year 2024-25 (Q4FY25) and muted near-term outlook due to intense competitive pressures and higher costs could lead to downward momentum on the stock. While the stock dipped by 3.44 per cent in early trade on Monday, it recovered a bit to close 1.07 per cent lower at 4,017.
The bigger threat for DMart is that the Reliance-Future combine now has grocery revenues that are nearly 2.5 times of it, putting pressure on the former to improve stickiness of its consumers.
Ramping up e-commerce operations and going beyond its current strongholds are key challenges for the grocery chain in its battle with Mukesh Ambani's retail behemoth.
Experts say Biyani will now become a contract manufacturer of fashion and FMCG products, with the Reliance group being one of his customers.
While Unilever has been aggressive, both organically and inorganically in the country, P&G's approach has been about achieving 'balanced growth' in terms of top line and bottom line.
A pick-up in low-cost cigarette consumption helped India's largest cigarette maker boost margins
After demonetisation, sharp fall in PE valuation offers an attractive entry point into some quality names and these 3 FMCG companies are expected to see the fastest growth in earnings with at least 15 per cent upside potential