Metro Brands - Demand Momentum Seen Strong; Acquires Fila, Proline: Nirmal Bang

Nirmal Bang Report

We recently hosted Metro Brands Ltd. management for an investor interaction. The company has seen strong revenue growth in H1 FY23 due to festivals, marriages, some element of pent-up demand and strong store openings.

Against the pre-pandemic 1 HFY20, sales was up 66% (~15% driven by price) - significantly higher than Bata India Ltd.’s (10.5%, though we would say the comparison is not exactly apple-to-apple).

In the medium term Metro Brands stated its aspiration to grow revenue at a high teen rate as growth is broad-based across its various formats, categories, city-tiers, and regions.

There was a 28% growth in store count for Metro Brands from H1 FY23 implying strong same-stores sales growth.

The company guided for 55-57% gross margins, 30% plus Ebitda margins, and 15% plus profit after tax margin on a sustainable basis though H1 FY23 was higher on all parameters.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.