Axis Securities has a sell rating on Avenue Supermarts (DMart) but prefers Aditya Birla Fashion and Retail (ABFRL) and Bata India, Suvarna Joshi, senior analyst-FMCG, told CNBC-TV18.

She further said that DMart’s valuations are not attractive to recommend fresh entry into the stock.

Talking about stocks, Joshi said, “In apparel space companies, we do like ABFRL, it’s a stock under our buy coverage whereas in terms of footwear space we like Bata which is an attractive stock to hold on to. On DMart, we continue to have a sell rating and we will look for more clarity as to how things emerge and become more constructive going forward.”

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She added that DMart’s sales per square foot are still 8 percent below pre-COVID-19 levels and footfalls may be lower on account of the third wave of COVID (with the new variant, Omicron) as well.

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For the entire interview, watch the video