Rs 2.25 Dividend: September 6 Record Date; Buy A Stake In Rekha Jhunjhunwala Stock?

Since 1955, Metro Brands Ltd., one of the largest specialty retailers of footwear and accessories in India, has been a leading Indian brand in the footwear industry. The firm ran 854 stores in 195 cities throughout 31 Indian states and Union territories as of June 30, 2024. Rekha Jhunjhunwala, wife of the late husband of Rakesh Jhunjhunwala, who was frequently referred to as India's Warren Buffett, has Metro Brands in her portfolio. As of June 30, 2024, Rekha Jhunjhunwala held 2,61,02,394 equity shares, or a 9.60 per cent stake of the firm, in Metro Brands.

Metro Brands Dividend

The Board of Directors of the company has recommended a dividend of Rs. 2.25 per share on the face value of the paid-up equity shares of Rs. 5/- each for the Financial Year 2023-24.

The Board has fixed "Friday, September 6, 2024 as the "Record Date" for the purpose of ascertaining the eligibility of Shareholders for payment of Final Dividend for the Financial Year 2023-24. Further, the Register of Members of the Company will remain closed from Friday, September 13, 2024, to Thursday, September 19, 2024 (both days inclusive) for the purpose of AGM; and Thursday, September 12, 2024, shall be the "cut-off date" for the purpose of eligibility of Shareholders to vote on the Resolutions as set forth in the AGM Notice. The Final Dividend, if declared, will be paid within a statutory period of 30 days from the date of AGM," said Metro Brands in a stock exchange filing.

Metro Brands Q1 Results

In Q1 FY25, the company's standalone net profit decreased by 3.27% to Rs 92.35 crore from Rs 95.47 crore in Q1 FY24. The revenue from operations dropped slightly to Rs 563.21 crore in the June quarter from Rs 564.41 crore in the corresponding quarter last year. Profit before tax was Rs 122.97 crore in Q1 FY25, lower 6.6% from Rs 131.66 crore reported in the same period last year. EBITDA went down by 4.8% year over year to Rs 180 crore in the quarter ended June 30, 2024, with an EBITDA margin of 32% as opposed to 33.6% in Q1 FY24.

Commenting on the quarter's performance, Mr. Nissan Joseph, CEO of Metro Brands Limited, stated, "Considering the double-digit Y-o-Y growth in Q1 over the past two years, along with the industry seasonal headwinds, the recent quarter was indeed challenging. Nonetheless, I am proud of the team's operational controls and strategic execution. Our ability to maintain stable profitability and drive operational efficiency during such a period is commendable. Equally, we are excited about adding talent in our team and the upcoming opportunities including the launch of Foot Locker and the signing up of New Era, establishing our increasing foothold in the sports and athleisure category."

Metro Brands Share Price Target

KKunal V Parar - VP of Technical Research and Algo at Choice Broking said, "The stock has been trading within a broadening rising wedge formation on the weekly chart, indicating a potential for a positive move. Additionally, the stock is trading above its 100-day moving average, further confirming the bullish outlook. On the hourly chart, the stock has found support at its previous bottom, suggesting a potential bounce-back."

"The daily momentum indicator, RSI, is also trending above the 50-mark, signalling positive momentum. Given this technical structure, we anticipate a strong upside move, targeting levels of 1410 to 1545, with a strict stop-loss at 1220," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.