Radhakishan Damani, promoter of Avenue Supermarts that runs the supermarket chain DMart, has reportedly become the only Indian tycoon whose wealth hasn't eroded in the recent market turmoil caused by the spread of the COVID-19 pandemic.
Thanks to panic buying by consumers in India to hoard essentials amid the nationwide lockdown, the share price of Avenue Supermarts Ltd has surged by over 20 percent in 2020. On Wednesday, the stock hit an upper circuit of 5 percent of Rs 2,278.75.
As per Bloomberg's calculation, Radhakishan Damani's net worth has surged 5 percent this year to $10.2 billion, singling him out to become the only billionaire with gains among the 12 richest Indians whose wealth is tracked by the Bloomberg Billionaires Index. On the same index, billionaires Mukesh Ambani and Uday Kotak have lost more than 32 percent of their wealth from the selling spree over concerns of the economic effects of the coronavirus pandemic.
The low-cost model of DMart has helped it benefit over other supermarket chains amid the sudden increase in demand for fast-moving consumer goods due to the nationwide lockdown.
As long as its supply chain is not disrupted, the prospects for the Avenue Supermarts look good despite an extension in the lockdown.