Metro Brands Q4 Results Review: Dolat Capital Upgrades Rating To 'Add', Hikes Target Price

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Dolat Capital Report

Metro Brands Ltd.’s Q4 FY25 revenue was in line, while Ebitda and adjusted profit after tax were ahead of our estimate. The revenue grew by 10.3%, driven by sustained consumer demand, robust performance across categories and focused strategic initiatives. In addition, e-com channel (inc. omni-channel) grew by 45% YoY to Rs 610 million.

The company opened 13 (net) new stores in Q4 taking the total count to 908. We believe that momentum will recover in ensuing quarters fueled by penetration opportunities and the introduction of additional brands.

Additionally, ongoing premiumization efforts are expected to maintain higher ASP.

We upward revise our FY26/27E EPS estimates by 2.4/1.3% at Rs. 17.1/21.7 to factor in Q4 performance. Q4 performance indicated that the impact of Fila rationalization has reduced significantly.

In the long run, we continue to believe that Metro would outperform peers given-

1. its premium brand positioning,

2. higher aspirations,

3. demographic support and

4. low penetration.

Valuing the stock at 60x FY27E EPS to arrive at a target price of Rs 1,313. Upgrade to ‘Accumulate’. Buy on dips.

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