D-Mart’s spectacular surge of 13% today caused joy to many:
Dmart closes highest level since listing, guḍ chance of strong upside from here pic.twitter.com/FdQHw1JAXt
— Ashwani gujral (@GujralAshwani) April 6, 2017
Ashwani Gujral, the noted expert on technical analysis, was full of exuberance. It appears that he had predicted that the stock would surge and had advised his clients to load up on the stock. He opined that D-Mart has a good chance of more upside even from these exalted levels.
— Abhilash L.S (@abhilashkattay1) April 7, 2017
However, some lamented their decision to sell the stock prematurely.
Considered myself very smart when I sold my dmart ipo shared above 600 rs on listing day. And now at 720++, I feel like a fool
— KJ B Mathew (@kjbmathew) April 7, 2017
Some had an i-told-you-so look:
— Aakash K Hindocha (@aakashhindocha) April 7, 2017
D-Mart naysayers left red faced and scratching their heads..:)
— Kush Katakia (@kushkatakia) April 7, 2017
The stock is up a mind-boggling 180% from the issue price.
Radhakishan Damani made Rs. 6100 crore in just two days & becomes top 500 Billionaire in the World with net worth of $4 Billion
Radhakishan Damani attracts money the way honey attracts bees.
Amit Mudgill of ET did some elaborate number crunching to conclude that the wily Billionaire had raked in an enormous gain of Rs. 6,100 crore in just two days from D-Mart.
“Shares of Avenue Supermarts have rallied 2.5 times over its issue price of Rs 299 since their listing. The stock soared nearly 19 per cent in just two sessions till Friday to make Damani and his family richer by Rs 6,100 crore,” Amit Mudgill said with great excitement in his tone.
“The Bloomberg Billionaire index shows Damani as the 20th wealthiest Indian, with $4.10 billion wealth as of Friday. He is among the top 500 world billionaires,” he added with obvious pride at the incredible achievement of a fellow Indian.
Porinju Veliyath displays incredible foresight and sense of timing
At this stage, we have to compliment Porinju because though eminent experts had condemned D-Mart as being “beyond expensive” and as suffering from “irrational exuberance” and though Porinju had himself expressed the view that the IPO was overvalued, his sixth sense instinct goaded him to buy a chunk of 10,000 shares on the day of listing.
.@porinju: Bought 10,000 shares in D-Mart today.
— ET NOW (@ETNOWlive) March 21, 2017
Assuming Porinju bought D-Mart at the closing price of Rs. 641 on the day of listing, he has made a tidy profit at the CMP of Rs. 750 in just a few days.
CRISIL and JP Morgan give D-Mart a clean chit
What appears to have caused the great excitement at the D-Mart counter is the fact that CRISIL upgraded the rating to AA/stable while JP Morgan opined that the Company is a relatively “safe” play on India’s consumption growth story, given the non-cyclical nature of the food retail business.
JP Morgan made it clear that it is very bullish about D-Mart’s future prospects:
“Significant headroom to gain share with prudent store expansion (around 2.1 million sq ft over FY18-20); sustaining healthy average same-store-sales growhth momentum at around 18 percent over FY17-20 (against 25 percent over FY12-16); scope for margin improvement exists with scale benefits, though we build stable margins; and private label growth and contribution from online over the medium term would be growth drivers,” the eminent brokerage said.
Wal-Mart has 5000 stores in US, which has population of 33cr. DMart has 118 stores in a country population size of 120cr or 4x bigger thnUS
— Jitendra Kumar Gupta (@Jitendra1929) April 7, 2017
Snapdeal’s Kunal Bahl gets inspired by D-Mart
The unique aspect about Radhakishan Damani is that he not only inspires his fans but even his arch rivals look up to him for inspiration.
“While many other retailers were growing stores rapidly, D-Mart was ensuring that each store is profitable so that their growth is sustainable and well thought through. In their business, too, like ours, I’m sure there would have been differing voices in 2005-10 on whether rapid expansion of stores and top line is the right strategy or focusing on unit economics. Clearly, in spite of the external pressure they may have faced, they stuck to their principles and the results are phenomenal”, Kunal Bahl said with awe in his tone.
More multibagger gains expected?
It is obvious that we cannot afford to ignore Porinju’s pronouncements given the incredible luck that he has been enjoying on the Bourses.
“Possible for D-Mart to have a market cap of around Rs 1 lk cr in 3-4 years,” Porinju said with the air of a prophet implying that there are at least 200% gains waiting to be harvested from the stock!
.@porinju: Possible for D-Mart to have a market cap of around Rs 1 lk cr in 3-4 years.
— ET NOW (@ETNOWlive) March 21, 2017
So, in these circumstances, we will have to stay on red alert and look for ways and means to tuck into the stock whenever the opportunity presents itself!