D-mart is very well known in India. Retail market chain which is changing the future of Indian retail market with its sound business model. Since 2000 when D-mart is started, it has not shut a single store of it. This only justifies strategy and sound business model of it. And the brain behind this successful business model is Indian Stock Wizard RK Damani.
Rakesh Jhunjhunwala consider Mr Damani as his Guru in his success journey of stock market. Mr RK Damani himself is on of value investor. He has made big fortune in Indian stock market by investing in great Indian corporations in late 80’s. At last known equity portfolio value of Mr RK Damani is around INR 2665cr.
Mr Damani started from almost nothing. At age of 32 with absolute no knowledge of Stocks , he enter the family business of stock broking. He began as a speculator at the stock market. within no time, he understood that watching was not the best way to make or grow capital, and hence, taking inspiration from the legendary value investor Chandrakant Sampat, he started playing for the long term. His philosophy was long term, say 5 to 10 years. He would see if the product has the potential that far in the future. Gradually, his judgement began getting right, and within the next couple of years he was standing at par with the ranks of the biggies on Dalal Street.
As his nature Mr Damani in 2001 , entered in new unknown space which he has no knowledge about, Retail Business. In a market where more recognized and larger counterparts such as Spencer’s (RP-Sanjiv Goenka Group), More Store (Aditya Birla Retail), Star Bazaar (Tata Group-owned chain of hypermarkets) and Hypercity (Shoppers Stop-owned). In such a competitive market D mart has successfully managed to crack the code in just about a decade.
Now there is an unsaid rule in the market that – “one must not open any store within a 1km radius of Dmart, simply because, no one can beat them on prices.”
As now D- Mart is coming with IPO on 8thMarch , Mr Damani stake of 90 percent will be valued around INR 1600 Cr. All broker house has given high rating to Dmart IPO so as we also consider it good buy even if one not get hand on IPO, Investor can buy it after listing long term.