Shares of Shoppers Stop Ltd. jumped over 11% to their 52-week high as improved demand helped the apparel retailer to swing to profit in the first quarter.
The company posted net profit of Rs 22.83 crore in the quarter ended June against a net loss of Rs 118 crore a year ago and a loss of Rs 15.85 crore in the preceding three months, according to an exchange filing on Tuesday.
Shoppers Stop Q1 FY23 (Consolidated, QoQ)
Revenue up 33% at Rs 948.44 crore
Ebitda up 2X at Rs 162.50 crore
Ebitda margin at 17% against 11%
The company said customer footfall was back to pre-pandemic levels. It expects a further recovery in demand as economic activity normalises. Shoppers Stop is expanding its retail segment and shifting focus on omni-channel retail experience to cater to the users.
Both customer visits (3.42 crore) and average transaction value (Rs 4,344) were ahead of the corresponding quarters in the last three years.
Shares of the company climbed as much as 11.74% to a 52-week high Rs 605 apiece intraday on Wednesday. The stock closed with nearly 8% gains. The trading volume was more than 37 times the 30-day average, when markets closed. The Relative Strength Index on the stock was 71, suggesting it may be 'overbought'.
Of the 11 analysts tracking the stock, six maintain a 'buy', four suggest a 'hold' and one recommends a 'sell', according to Bloomberg data. The 12-month consensus price target implies a downside of 10.1%.
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