Mumbai, Sept. 18 -- The brokerage described Avenue Supermarts as a "major compounder" in India's consumption story and expects the company to enter a phase of significant rollout acceleration. It noted that DMart is strengthening its e-commerce business, while steady growth in Same Store Sales - which rose in high single digits last year - has eased concerns about competition from quick commerce players.

According to the brokerage, Avenue Supermarts stands to benefit from the nearly $60 billion organised grocery retail market. It projects that the slow and steady penetration of organised retail could allow DMart to grow structurally between 18% to 22% over the long term, supporting the stock's elevated valuations.

Mumbai-based Avenue Su...