Midcap Footwear Stock Showing Upside Potential, Buy For High Return, Says Motilal Oswal

Broking firm Motilal Oswal in its Corner Office report reiterates Buy on Metro Brands Ltd. (Metro) with a Target price of Rs. 1,100 apiece. The brokerage sees a potential upside of up to 15% if purchased at the current market price.

The brokerage organized a 90-minute session with the senior management of Metro Brands Ltd. In the session, the brokerage covered Metro's business model, its growth strategy, Fila integration, as well as competition and risk in detail.

Metro Brands is a Footwear company that operated Stores across spread across 30 states and union territories in India. It has a Market Capitalisation of Rs. 26,127.15 crore. It is a midcap company.

Valuation & view

According to the brokerage firm, Metro trades at a premium valuation, due to: 1) its internally funded growth and 2) superior store economics along with a strong runway of growth. "We factor in 24%/23% revenue/PAT CAGR over FY23-25E and value the stock at 55x P/E on FY25E EPS to arrive at our TP of INR1,100. Reiterate BUY," the brokerage has said.

Stock Overview

The stock is currently trading at Rs. 961.50 apiece, down 0.49% as compared to its previous close of Rs. 966.25 apiece. The stock's 52 week high is Rs. 1,013 apiece recorded on June 02, 2023. While the 52 week low is Rs. 525.50 apiece recorded on June 20, 2022.

It gave 2.06% negative return in 1 week, however, it gave 20.89% positive return in the past 3 months. In the past 1 year, it gave 69.77% positive return. Since its listing date on 21st December 2021, the stock has given 94. 89% positive return.

Disclaimer - The stock has been picked from the Motilal Oswal Financial Services' Corner Office report. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.