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.
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.
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.
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.
