Avenue Supermarts, which operates DMart stores, has received a positive rating upgrade from Bank of America (BofA), moving from 'underperform' to 'neutral'. This change reflects optimism as the retailer's sales growth appears to be recovering. DMart ended FY26 on a strong note, adding 85 new stores, significantly up from 50 the previous year. Additionally, the company's fourth-quarter revenue growth was 19%, surpassing BofA's estimate of 16%. This performance suggests that the underlying same-store sales growth (SSSG) may have stabilized despite challenges such as geopolitical tensions and potential gas shortages. Notably, about 80% of DMart's stores are located outside major urban centers, reducing exposure to competition from quick commerce. The company is also preparing for a leadership transition, with Anshul Asawa set to replace long-time CEO Neville Noronha. Asawa's strategy for DMart Ready and future expansions is anticipated during the July analyst call. However, BofA cautions that the stock's current valuation, trading at 65x FY28 earnings, may limit significant price increases in the near term.