NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Metro Brands Ltd.’s revenue grew 5% YoY (in line, -1% YoY in Q1), driven by ~9% YoY area additions. Gross profit grew 2% YoY (3% miss) due to ~100 bp impact of FILA inventory liquidation at higher discounts.
Ebitda was flat YoY (5% miss) on account of lower gross margin, while PAT grew 6% YoY (7% miss).
H1 revenue (2% YoY) and Ebitda (-2% YoY) were muted. However, management expects pick-up in H2 to drive 10-15% YoY revenue growth and Ebitda margins to expand to ~30% for FY25 (versus ~29% in H1).
We lower our FY25/26 revenue/Ebitda by 1-4% and PAT by 3-5% on account of weaker H1.
However, given the pick-up in store additions; a long runway for growth in Metro, Mochi, and Walkway formats; and significant growth opportunity in FILA/Foot Locker, we build in revenue/Ebitda/PAT CAGR of 14%/18%/20% over FY24-27E.
We reiterate our Buy rating on Metro Brands with a target price of Rs 1,465 based on 70 times Dec’26 EPS (implying 26% upside).
Click on the attachment to read the full report:
IndusInd Bank Q2 Results Review – Weak; Steering Through Near-Term Challenges; Reiterate ‘Buy’: Motilal Oswal
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
. Read more on Research Reports by NDTV Profit.