Metro Brands certainly is among the more disciplined footwear retailers with an in-sync product-market fit. However, stretched valuations (55x Sep-27 P/E) keep the brokerage at bay.
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HDFC Securities Institutional Equities
A mosaic of channel checks and management commentary across earnings calls makes us suspect Metro Brand Ltd. may be at an interesting point in its expansion journey. The inferences we drew across channel checks suggest-
demand continues to stabilize in Q2 (GST-led fluctuations notwithstanding). Post the implementation of new GST rates (Sept 22, 2025); Sep-25 sales are likely to readjust;
< Rs 2,500 products account for 40% of sales; which could potentially see a rejuvenation in demand as GST savings aid consumer purchasing power;
Walkway could be a joker in the pack with the reintroduction of 100%).
However, stretched valuations (55x Sep-27 P/E) keep us at bay. We largely maintain our FY27/28 estimates with a revised DCF-based target price of Rs 1,050/share (implying 47x Sep-27 P/E).
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