Price trend analysis indicates D'Mart ahead of JioMart, BigBasket

A Prabhudas Lilladher report says D’Mart Ready remains the most competitive in online retail, led by 1) a sustained price gap with Big Basket and Jiomart, 2) rising consumer activations and advertising, and 3) increased delivery charges/higher cart value for free delivery by other channels.

"We analyzed price trends of 125 products across D’Mart Ready, Jiomart and Big Basket in key consumer categories of loose grocery items, dairy, packaged food, beverages, personal care and home care. We observed that out of 125 products that we compared, the price gap (Nov’23 vs Aug’23) between D’Mart Ready and Big Basket increased for 40 per cent of compared products, while for Jiomart, the trend was mixed with 36 per cent / 24 per cent of products seeing gap increase/decrease," says the report.

"We expect D’Mart Ready to sustain strong growth due to sourcing and scale advantages. We expect D’Mart Ready to report sales of Rs48bn with an EBITDA loss of R424mn by FY26 with a complete turnaround by FY28. Retain ‘Buy’ on D’Mart with DCF-based TP (target price) of Rs 4,724," it says.

Read the Prabhudas Lilladher report here.