At 1:38 am, the stock was trading 17% higher at Rs 1,209, as against rangebound movement on the Nifty50 index. The trading volumes on the counter nearly doubled with a combined 1.5 million shares changed hands on the NSE and BSE so far.
According to media reports, the global financial services firm Goldman Sachs initiated coverage of the stock with ‘Buy’ rating and set a target price of Rs 1,586.
D-Mart which is promoted by veteran ace investor Radhakishan Damani rose 276% against its initial public offer (IPO) price of Rs 299 per share. The stock had ended at Rs 642 on its stock market debut on 21 March, 2017, and has rallied 75% since then. On comparison, the benchmark Nifty50 index gained 7% during the same period.
D-Mart is an emerging national supermarket chain that offers customers a range of home and personal products under one roof. The Company offers a wide range of products with a focus on foods, non-foods (FMCG) and general merchandise & apparel product categories.
“Reiterating its mission of being the lowest priced retailer, D-Mart’s larger focus of expansion would be in states where it is already present. SSSG (Same-Store Sales Growth) trends have been healthy further supported by accelerating shift towards modern trade. Tight control over costs was noticed in FY17 driving margin expansion,” JP Morgan said in key takeaways from FY17 annual report of D-Mart.