Other Nifty components like Ambuja Cements, Hindalco, Cipla and Lupin are valued lower than D-Mart. Market players said D-Mart shares could be soon included in benchmark indices such as the Nifty. The move will be positive for the stock, as it will attract investments from exchange-traded funds.
D-Mart, however, has high promoter holding of 82.2 per cent, which could strict its weight in indices, where consider only free-float (non-promoter) holding.
Analysts say shares of D-Mart are trading at rich valuations but the downside could be protected, thanks to low free-float, high-growth prospects and lack of other investment alternatives in the same space.