As of early December 2025, Avenue Supermarts (DMart) is still one of the most closely watched retail stocks in India. The company runs the DMart supermarket chain and is known for its “everyday low price” model.
The big question many investors have right now:
Is DMart still worth buying at these levels in December 2025, or is most of the upside already priced in?
Let’s break it down in simple language.
DMart stock snapshot – December 2025
Here’s a quick view of where DMart stands right now.
Stock snapshot (as of 2 December 2025) Trendlyne.com+3Groww+3Yahoo Finance+3
| Metric | Value (approx) |
|---|---|
| Current share price | ~₹3,960–3,970 |
| Market cap | ~₹2.58–2.60 lakh crore |
| 52-week high | ~₹4,949 |
| 52-week low | ~₹3,340 |
| Trailing P/E (TTM) | ~94x |
| Industry P/E (retail / peers) | ~86–95x |
| P/B ratio | ~11–13x |
| ROE (Return on Equity) | ~12% |
| Dividend | No dividend; company reinvests |
So DMart is:
- A large-cap compounder with strong brand and scale.
- Still trading at a very rich valuation compared to many other Indian stocks.
Business overview: Why DMart gets “premium” valuation
DMart is not just another supermarket. Its model is very focused:
- Targets middle-class families.
- Sells everyday essentials (grocery, FMCG, basic apparel, home needs).
- Runs large stores in high-density areas.
- Tries to be the lowest-priced retailer in its catchment. Groww+1
Some key business highlights:
- Steady revenue growth
- Recent financials show annual revenue of around ₹63,000+ crore and profit above ₹2,700 crore. Screener+1
- Growth is driven by new stores and higher sales per store.
- Light debt, strong balance sheet
- Very low debt-to-equity.
- This reduces risk in a slowdown and supports steady expansion. Groww+1
- No dividend, but reinvestment focus
- DMart does not pay dividends.
- Management prefers to reinvest in new stores and infrastructure.
- Promoter and brand trust
- Founded by Radhakishan Damani, a respected value investor.
- Brand has a loyal customer base in many cities. Groww+1
🔗 Suggested interlink idea for your site:
“Also read: Top Indian Retail Stocks to Watch in 2026”
You can link that to a future blog comparing DMart with Trent, V-Mart, Avenue Supermarts, etc.
Recent Q2 FY26 results: Growth is steady, not explosive
For the quarter ended September 2025 (Q2 FY26), DMart posted strong revenue growth but modest profit growth. Bajaj Broking+2The Economic Times+2
Q2 FY26 key numbers (consolidated)
| Metric | Q2 FY26 | Q2 FY25 | Change YoY |
|---|---|---|---|
| Revenue from operations | ~₹16,600–16,700 cr | ~₹14,400–14,500 cr | +15% |
| Net profit | ~₹685 cr | ~₹659 cr | +3–4% |
| EPS | ~₹10.5 | ~₹10.1 | Mild rise |
What this tells us:
- Top line (sales) is growing in mid-teens.
- Profit growth is much slower because margins are under pressure.
- DMart is still expanding stores and investing in scale, which caps short-term margins.
News reports also noted that this was DMart’s strongest Q2 revenue in four years, but the stock still slipped a bit after results, as the market expected even more. The Economic Times
🔗 Suggested interlink idea:
“Related: How to Read Quarterly Results of Indian Stocks (Beginner’s Guide)”
Valuation check: Is DMart too expensive?
This is the big debate.
DMart’s P/E is around 90–95x earnings right now. That means investors are willing to pay nearly 94 years of current earnings for one share, if earnings stayed flat. Smart Investing+1
To put that in context:
- DMart’s own 5-year average P/E has been even higher (often above 110–120x). Smart Investing+1
- The retail / consumer sector P/E is already expensive, but DMart trades at a premium even to the sector. Groww+1
Quick view: DMart valuation in December 2025
| Item | Approx Value | Comment |
|---|---|---|
| Current P/E (TTM) | ~94x | Very high |
| 5-year P/E range | ~93x–174x | Near lower end of own range |
| Sector P/E | ~86–95x | DMart at slight premium |
| P/B ratio | ~11–13x | High but common for quality |
So is it “overvalued”?
- If you look at pure numbers, yes, it’s very expensive vs the broad market.
- But DMart has high quality, strong brand, and long runway.
- That is why many investors still treat it as a “quality at any price” story – though that comes with risk if growth slows.
🔗 Suggested interlink idea:
“Read next: What Is P/E Ratio and How to Use It for Indian Stocks?”
Expert views and share price targets for December 2025
Analysts are not fully in agreement on DMart. Some say “buy for the long term”, others say “valuations are stretched”.
Here are a few recent views:
- Axis Securities – Target ₹4,960 (Buy / Top Pick)
- Axis Securities listed Avenue Supermarts among its top large-cap picks.
- Target price around ₹4,960, implying ~25% upside from levels near ₹3,960. The Economic Times
- ICICI Securities – Target ₹3,500 (Reduce)
- ICICI Securities kept a Reduce call.
- Target price ₹3,500, which is below the current market price. The Economic Times
- JM Financial – Target ₹3,880 (Hold)
- JM Financial rated DMart as Hold.
- Target price ₹3,880, close to current levels, suggesting limited upside in the near term. The Economic Times
- Consensus target – Around ₹4,340–4,350
- Data from Trendlyne shows an average target of ~₹4,345 from multiple analysts.
- That is about 8–9% upside from recent prices. Trendlyne.com+1
Summary table: DMart share price targets (Dec 2025 view)
| Brokerage / Source | Rating | Target Price (₹) | View vs ~₹3,960 spot |
|---|---|---|---|
| Axis Securities | Buy | 4,960 | Strong upside |
| ICICI Securities | Reduce | 3,500 | Downside risk |
| JM Financial | Hold | 3,880 | Near fair value |
| Consensus (Trendlyne) | Mixed | ~4,345 | Modest upside |
Overall message from experts:
- Upside is not huge in the near term at current valuations, unless earnings start growing faster.
- Long-term story may still be intact, but short-term returns can be range-bound and volatile.
⚠️ Important: These are third-party broker targets. They change often. Always check the latest reports before acting.
What could move DMart’s share price in December 2025?
Here are the key drivers to watch this month and in the coming quarters.
1. Festive and year-end demand
- December sits after the main festive season, but consumption trends still matter.
- Strong footfalls in stores could support sentiment.
- Any update from management on same-store sales growth will be tracked closely.
2. Margin improvement (or pressure)
- DMart works on thin margins but high volumes.
- Any rise in:
- Rental costs
- Staff costs
- Competition-driven discounts
can pressurise margins and profits.
- On the flip side, better sourcing, private label mix, and operating leverage can lift margins slowly over time. Moneycontrol+2Simply Wall St+2
3. Store expansion pace
- DMart keeps expanding its store network in new cities and states.
- Faster expansion can support higher revenue growth, but also brings higher upfront costs.
- Market will watch the number of new stores added and their early performance. The Times of India+1
4. Competition from online and offline players
DMart faces growing competition from:
- Online grocery platforms like Blinkit, Zepto, Swiggy Instamart, etc.
- Modern trade players and fashion/value retailers.
If competition gets aggressive on discounts and convenience, DMart may need to sacrifice some margins to protect market share. mint+1
🔗 Suggested interlink idea:
“Must-read: How Quick-Commerce Is Changing India’s Grocery Market”
5. Valuation re-rating (up or down)
- If earnings growth accelerates, the market may justify current high valuations or even push P/E higher.
- If growth disappoints, a P/E de-rating (say from 90x to 60–70x) can hurt the stock even if profits grow.
DMart in December 2025: Pros vs Risks
Here’s a simple side-by-side view for investors.
| Positives (Pros) | Key Risks / Negatives |
|---|---|
| Strong brand and loyal customer base | Very high valuation (P/E ~94x) |
| Consistent revenue growth in high-teens | Profit growth slower than revenue |
| Low debt, solid balance sheet | Margin pressure from competition and costs |
| Large runway for store expansion in India | Any slowdown in consumption can hit volumes |
| Promoter with strong track record | No dividend; all returns must come from price |
| Market sees it as a “quality compounder” | Risk of P/E de-rating if results miss estimates |
So, is DMart a buy, hold, or avoid in December 2025?
This depends a lot on your time horizon and risk profile. This article is not investment advice, but here is how many investors think about it:
For long-term investors (5+ years)
- DMart still looks like a structural growth story in Indian retail.
- If India’s consumption keeps rising and DMart executes well, earnings can compound for many years.
- But you are paying a premium price today, so returns may not be linear.
This bucket of investors often:
- Treat DMart as a core “quality” holding.
- Are okay with short-term volatility and even 20–30% drawdowns.
For medium-term investors (1–3 years)
- Upside over the next 12–24 months may be moderate, unless there is a big positive surprise in margins.
- Analyst targets are mostly in a narrow band (₹3,500–₹4,960).
- Risk–reward looks balanced, not deeply undervalued.
For short-term traders
- DMart can give swing opportunities around results, news, and market sentiment.
- But it is not a typical “high beta” stock.
- Moves can be sharp after earnings or big block deals, but day-to-day volatility is moderate. ScanX+2ScanX+2
How investors can approach DMart now
If you’re thinking about DMart in December 2025, here are some simple, practical approaches (not advice, just common strategies):
- SIP approach instead of lump sum
- Buying a small quantity every month can smooth out volatility.
- Helpful when valuations are rich and timing is hard.
- Buy-on-dips strategy
- Some investors wait for 10–20% corrections from recent highs.
- This reduces entry risk in a high-P/E stock.
- Core + satellite
- Keep a small core position in DMart as a long-term compounder.
- Use a satellite position for trading around events (results, news, etc.).
- Clear exit rules
- If you enter at high valuations, decide in advance:
- At what level of earnings growth slowdown you’ll re-evaluate.
- At what price or P/E level you’ll trim or exit.
- If you enter at high valuations, decide in advance:
🔗 Suggested interlink idea:
“Next: Risk Management Rules Every Retail Investor Should Follow”
Key takeaways for December 2025
- DMart is trading around ₹3,960–3,970 with market cap near ₹2.6 lakh crore. Groww+2Tickertape+2
- Business growth is steady, with Q2 FY26 revenue up about 15% and profit up around 4% YoY. The Economic Times+1
- Valuations remain very expensive at nearly 94x P/E.
- Analyst targets range widely from ₹3,500 (Reduce) to ₹4,960 (Buy), with a consensus around ₹4,345. Trendlyne.com+4The Economic Times+4The Economic Times+4
- For long-term investors who believe in India’s consumption story, DMart can still be a high-quality compounder, but entry price risk is real.
Always cross-check the latest numbers, read a few full brokerage reports, and consider your own goals and risk appetite. If needed, talk to a SEBI-registered advisor before taking any call.
FAQs – DMart (Avenue Supermarts) Stock – December 2025
Q1. What is DMart’s share price in December 2025?
DMart is trading around ₹3,960 per share on 2 December 2025 on the NSE, with a 52-week range of about ₹3,340 to ₹4,949. Groww+2Yahoo Finance+2
Q2. What is the consensus share price target for DMart?
Data from Trendlyne shows an average target near ₹4,345, which is roughly 8–9% upside from current levels. Trendlyne.com+1
Q3. Is DMart overvalued at a P/E of around 94x?
DMart does look expensive versus the broad market, but it has often traded at very high P/E due to its quality, growth, and strong brand. Whether it is “overvalued” depends on how fast you expect earnings to grow in the next 5–10 years. Smart Investing+2Smart Investing+2
Q4. Does DMart pay any dividend?
No, Avenue Supermarts typically does not pay dividends. It reinvests profits back into the business for expansion. Groww+1
Q5. Is DMart good for SIP investing?
Many investors prefer SIP-style investing in expensive but high-quality names like DMart to average out entry price. But this still carries market risk, so it should fit your risk profile and asset allocation.
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