Radhakishan Damani’s Notional Wealth Surges as DMart Shares Rally on Q4 Update

Rallying on the back of a strong fourth-quarter update, DMart shares surged 5.6 per cent to hit a fresh 52-week high of Rs 4,710.15 on the BSE. This surge in share price resulted in billionaire Radhakishan Damani seeing his net worth rise, as his stake in Avenue Supermarts Ltd (DMart) jumped in value.

Radhakishan Damani's Notional Wealth Surges as DMart Shares Rally
Radhakishan Damani’s Notional Wealth Surges as DMart Shares Rally

As of December 31, Radhakishan Damani owned 23.03 per cent of DMart, which was valued at Rs 66,805 crore. Following the recent rally, his stake is now worth Rs 69,430.22 crore, marking an increase of Rs 2,625 crore. Similarly, Damani’s family members also saw the value of their stakes in the retailer rise significantly.

His wife, Shrikantadevi Radhakishan Damani, owned a 1 per cent stake in Avenue Supermarts, which was worth Rs 3,016 crore before the rally. After the surge in shares, her stake is now valued at Rs 2,902 crore. Damani’s brother, Gopikishan Shivkishan Damani, who held 5.60 per cent stake in DMart, saw the value of his stake rise by Rs 638 crore to Rs 16,251.43 crore.

The surge in DMart shares came after the retailer reported a strong fourth-quarter performance, with standalone revenue from operations hitting Rs 12,393.46 crore, up from Rs 10,337.12 crore in the year-ago quarter. This growth was supported by high productivity and footprint, leading to solid revenue growth.

Analysts at Motilal Oswal noted that DMart’s sales growth for the quarter was driven by a 7 per cent increase in revenue per store and a 13 per cent year-over-year rise in store additions. The revenue per store grew to Rs 140.40 crore, while the revenue per square feet reached Rs 33,451.

In the last three years, revenue per square feet had remained subdued due to larger store sizes and weak discretionary spending. However, this trend has been gradually reversing, as seen in the narrowing gap between revenue per store and revenue per square foot growth.

Following a period of subdued store additions, DMart added 24 stores in the December quarter, bringing the total count to 365 stores. Motilal Oswal has set a target of Rs 4,700 on the stock, reflecting their positive outlook on the company’s performance and growth potential.

Overall, the surge in DMart shares not only boosted the wealth of billionaire Radhakishan Damani but also underlined the strong performance and growth prospects of the retail company as it continues to expand its footprint and drive revenue growth.

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Ajith Kumar

Ajith Kumar

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