Rs 1.50/Share Dividend: Rekha Jhunjhunwala Stock Declares Record Date

Large-cap firm Metro Brands Ltd operates in the consumer discretionary industry. Since 1955, the company has been among the largest specialist retailers of footwear and accessories in India. After the Board announced the record date for the final dividend, the stock achieved an intraday high of Rs 1105.05 on the BSE today after opening at Rs 1020.35 apiece.

Metro Brands Dividend

The Board of the company has declared a final dividend at Rs. 1.50 per equity share on the face value of the paid-up equity shares of Rs. 5/- each for the FY 2022-23.

"Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors, in its Board Meeting held today i.eTuesday, August 1, 2023 have fixed September 1, 2023 as the "Record Date" for the purpose of ascertaining the eligibility of shareholders for payment of Final Dividend for the Financial Year 2022-23," said Metro Brands in a stock exchange filing on Tuesday.

Metro Brands has announced an equity dividend of 80.00% at a face value of Rs 5, or Rs 4 per share, for the financial year ended March 2023. This generates a dividend yield of 0.37% at the current share price of Rs 1085.30. Since March 16, 2022, Metro Brands Ltd. has issued 3 dividends.

Metro Brands Financials

For the first quarter that ended June 30, 2023, the company reported a consolidated 11.6 percent year-on-year (YoY) decline in net profit at Rs 93.5 crore compared to Rs 105.8 crore recorded in the year-ago quarter. Its total revenue for the quarter under review was Rs 582.5 crore, an increase of 14.7 percent over Rs 508 crore for the comparable period of the prior fiscal. EBITDA climbed by 2% to Rs 186.6 crore in Q1FY24 from Rs 182.9 crore in Q1FY23, but the EBITDA margin reached 32% from 36% in the corresponding quarter of the previous year.

Commenting on the performance of the company, Mr. Nissan Joseph, CEO, Metro Brands Limited, said, "I am pleased with our results as we finally entered a normalized quarter for the retail business. We experienced remarkable growth, surpassing pre-pandemic performance by 82%. Embracing the digital landscape allowed us to expand our reach and explore new markets with new brick and mortar stores and e-commerce channels. We remain confident in our strategic positioning of focusing on the premium consumer to drive growth."

Metro Brands said it has opened 27 new stores, expanding its presence to 182 cities and 8 new cities covered in Q1 FY 2023 -24.

Metro Brands Share Price Target

Ameya Ranadive, Sr Equity and Derivatives Analyst · Choice International Ltd said, "Metro Brand, currently quoting at 1089, has exhibited a period of consolidation within the range of 1020 to 1140 over the past few weeks. However, recent market activity has witnessed a significant breakout accompanied by substantial trading volumes. Notably, the stock is displaying a strong bullish momentum as it continues to trade above all its moving averages, including the short-term (20 EMA), mid-term (50 EMA), and long-term (100 and 200 EMA) indicators. Furthermore, the Bollinger Bands are signalling an expansion, indicating a notable increase in volatility. This surge in volatility could potentially be indicative of further upward movement in the stock price."

"Moreover, investors might consider a potential pullback to 1045 as an opportune entry point to accumulate positions. With a strategic approach, targeting a possible upside towards 1185-1215 seems plausible in the current market conditions. In conclusion, based on the technical analysis and recent market behavior, Metro Brand appears to be an attractive investment option at 1089, with a potential buying opportunity around 1045 and a target price of 1185-1212. Nonetheless, investors are advised to exercise prudence and diligence in their investment strategies to mitigate inherent risks," said Ameya Ranadive.

Metro Brands Shareholding

During Q1FY24, the company reported promoter shareholding of 74.20%, FIIs stake of 2.61%, DIIs stake of 5.72% and public stake of 17.45%. As per the shareholding pattern of Metro Brands for the quarter ended June 2023, Rekha Jhunjhunwala wife of late ace investor Rakesh Jhunjhunwala held 26,102,394 shares or 4.80% fully paid up equity stake in the company taking the holding value to Rs 2,819.1 Cr.

Disclaimer

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