Avenue Supermarts (DMART) 2QFY21 result was better than our estimates. Overall business reached c. 88% pre-covid level led by strong recovery in FMCG and staples while general merchandise and garment continues to face headwinds due to lower foot-fall. As a result, Inferior revenue mix led to decline in gross margins. Store addition rate remain robust (added 6 stores during 2Q vs 2 stores in 1Q). Interestingly; DMART shut down 2 stores (in Mira Road and Kalyan each) and converted them into fulfillment centers to support its online business. DMART also expanded online footprint to Pune. We have introduced FY23E in our estimates and upgrade our rating to BUY with a...