Leather · METROBRA
Footwear
from 1,005 today
Metro Brands reported a 15% YoY revenue growth in 1QFY27 driven by demand recovery, though EBITDA growth was weaker at 11% YoY due to margin contraction from higher investments in talent and brand-building. We reiterate our BUY rating with a revised target price of INR1,200.
We cut our FY27/FY28 EPS estimates by 3.0%/5.0%, factoring in muted near-term demand, continued store opening delays, tepid operating metric improvements, and limited margin expansion potential. We assign a DCF-based target price of Rs1034 and cut to Hold given rich valuations.
We remain positive on MBL's long-term outlook, supported by industry-leading store productivity and disciplined cost controls, strategic partnerships with global brands, and a long runway for growth across both core and emerging formats.
Metro Brands reported 15% YoY revenue growth in 1QFY27 driven by demand recovery from mid-Jun'26, though EBITDA growth was weaker at 11% YoY due to margin contraction from higher investments in talent and brand-building. We reiterate our BUY rating with a revised target price of INR1,200.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
