Shares of Metro Brands have delivered negative returns in the short term. The retail sector stock slipped 9.11% this year and fell 16.56% in a year.
A majority of the correction this year has come in the last two weeks with the stock slipping 7.86%. The near-term weakness in the stock can be attributed to the retailer’s earnings declared last week.
Net profit climbed 7.39% to Rs 98.51 crore in the June 2025 quarter against Rs 91.73 crore profit in quarter ended June 2024. Sales rose 9.05% to Rs 628.24 crore in the June 2025 quarter against Rs 576.08 crore during the previous quarter ended June 2024.
Rekha Jhunjhunwala, wife of the late investor Rakesh Jhunjhunwala, is a shareholder in the company and held a 14.37 per cent stake or 3.90 crore shares at the end of June 2025 quarter.
Brokerage Motilal Oswal said the company saw slightly weaker growth in Q1 as EBITDA was hurt by higher marketing spends. It has a price target of Rs 1,325 on the stock.
Consolidated revenue grew 9% YoY on a weak base to Rs 6.2 billion (2% below), driven by an increase in wedding-related footfalls.
“We cut our FY26-27E EBITDA and PAT estimates by ~5-6%, driven by slower store additions and muted SPSF. Overall, we build in revenue/EBITDA/PAT CAGR of 14%/15%/16% over FY25-28E. We reiterate our BUY rating on Metro Brands with a revised target price of Rs 1,325, premised on 65 times Sept’27 EPS. Consistent double-digit growth and ramp-up of newer formats such as FILA, Foot Locker, and Clarks remain key re-rating triggers for the stock,” said the brokerage.
Brokerage JM Financial said revenue missed estimates.
“Revenue grew 9% YoY (5% miss) as revenue per sqft declined 3% YoY. The miss was on account of (i) Eid advancement to March, (ii) early onset of monsoon impacting the states of Gujarat and Maharashtra, and (iii) geopolitical tensions,” said JM Financial.
Lower gross margin came 20 bps lower (YoY) and higher marketing spends towards brand building impacted EBITDA margin (lower 50 bps YoY) said JM while maintaining a BUY call with a revised target price of Rs 1,350 (Rs 1,400 earlier) based of 58x EPS as it rolled forward multiple to June 27.
Metro Brands stock was trading 1% higher at Rs 1,127 on BSE in the current trading session. Total 2715 shares of the firm changed hands amounting to a turnover of Rs 30 crore on BSE. Market cap of the firm rose to Rs 30,469 crore on BSE.
The stock hit its 52-week low of Rs 890.30 on March 27, 2025 and a 52 week high of 1430.10 on August 9, 2024.
Metro Brands Limited is a footwear and accessories specialty retailer. The company sells a range of branded products for men, women, unisex and kids, and for every occasion including casual and formal events.