'Buy' Metro Brands Shares Says Centrum Post Inline Q1 Results — Check Target Price

Metro Brands Q1 result was in-line with our estimates. The company witnessed third consecutive quarter of high single digit/DD growth. However, the growth is lower than long to mid term revenue guidance of 15-18% which management attributes to lumpiness in business due to Covid.

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Centrum Broking Report

Metro Brands Ltd. has corrected by ~18% over the last one year due to moderation in growth rates and lower store addition. The company has seen growth pick-up with DD/High single digit growth over the last three quarters; however it is lower than long/medium term guidance of 15-18%.

We estimate revenue/PAT CAGR of 14.6%/24.6% over FY25- 28E. We assign Buy rating on the stock. We roll forward our EPS estimates to Sept’27 of Rs 23.1 resulting in target price of Rs 1,270 based on target PE multiple of 55x.

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