New Delhi, June 25 -- Domestic brokerage firm Kotak Institutional Equities, in its recent note, maintained a cautious stance on DMart, citing rising competition in the quick commerce (QC) space. While the brokerage remains optimistic about DMart's physical store expansion-expecting its store count to grow from 415 currently to 620 by FY28E-it flagged intensifying pressure from QC players, who are rapidly expanding their geographic footprint across India.

Kotak believes this could result in heightened price competition, especially as DMart grapples with increasing employee and operating costs. The brokerage has therefore reiterated its 'Sell' rating on the stock, with a target price of Rs.3,400, implying a downside of 20.35% from the last...