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