Shoppers Stop: Motilal Oswal Retains 'Neutral' Stance Post Q1 Results But Hikes Target Price — Here's Why

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Motilal Oswal Report

Shoppers Stop Ltd.’s key focus areas remain:

1. profitability improvement in Departmental format;

2. revival of private label brands;

3. focus on the high-growth and margin-accretive Beauty segment; and

4. ramp-up in INTUNE.

We believe improved profitability in the departmental stores and profitable scale-up of INTUNE remain key to the re-rating of the stock.

We tweak our FY26/27E Ebitda estimates marginally, as a slower ramp-up in INTUNE was partly offset by better margin performance in departmental.

We build in FY25-28E revenue/Ebitda CAGR of 7%/9%.

We value Shoppers Stop at 10x Sep’27E EV/Ebitda (implies ~22.5x Sep’27E pre-INDAS 116 Ebitda) to arrive at our target price of Rs 510 (earlier Rs 475). Reiterate Neutral.

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