In the eyes of Morgan Stanley, DMart is the first choice in the online grocery delivery segment. However, this company does not do instant delivery like Instamart and Zepto. Morgan Stanley said in its report of November 23 that Avenue Supermart has adequate infrastructure for online, offline and quick delivery.
Improved number of customers returning to the platform
According to a recent survey by Morgan Stanley, people’s inclination towards online grocery shopping is increasing. The people surveyed have not declared the company’s e-commerce platform DMart Ready as their first choice. But the number of customers coming back again and again on this platform is good.
DMart is Morgan Stanley’s choice in this category. He has kept a price target of Rs 4,471/share for Avenue Supermarts Limited. That means there is a possibility of 16.6% increase from the current price.
The brokerage said that DMart is doing a good job in the offline grocery space to compete with others. According to him, the retailer has reduced losses in online delivery. Its survey also revealed that people are now using quick delivery apps not only for major needs but also for daily purchases.
Focus on increasing the company’s business
The company is focusing on increasing the basket value for DMart Ready. He sees a big opportunity in quick delivery. They do 100% delivery within 24 hours and work to deliver within 12 hours. In its offline business, instead of expanding into new cities, the company is focusing on increasing its presence in the 22 cities in which it is already present. The brokerage said that the losses in Mumbai are less than other cities.
DMart shares are the top choice for Morgan Stanley in the consumer category. He has given the reason behind this that the company provides better services at low cost and its balance sheet is also strong.
