We initiate coverage on Avenue Supermarts (DMART) with a BUY rating and target price of Rs 1,604 based on FY21E EV/EBITDA of 35x. Superior business model (ability to provide highest discount consistently on a profitable basis) and huge scope of penetration should help DMART to outperform competition. Concern on margin pressure due to rise in discounting intensity by online players is temporary (as has been proved globally) and not structural. To capture convenience driven online retail, DMART ready is best placed to drive aggressive growth. We forecast revenue/EBITDA /EPS to grow at 28%/32%/37% CAGR over FY19-21E....