New Delhi, May 4 -- While DMart's profitability was ahead of expectations, analysts believe the current valuations do not allow for any errors amid challenges like slowing like-for-like (LFL) sales growth, rising competition, margin headwinds and losses at DMart Ready.

Elara Capital said that DMart 's earnings growth (FY26 -28) is estimated at ~20% by consensus, underpinned by healthy store additions, stable LFL growth (~7-7.5% YoY), and broadly steady margins. At Rs.4,586, the stock trades at ~ 64x/ 55x FY27/FY28 consensus earnings, leaving limited room for error, it added.

Significant investments in store expansion, prior to stores becoming operational, are weighing on RoCE, as highlighted by Antique Stock Broking.

"The net block gre...