Metro Brands Q3 Review — Inline Results; Motilal Oswal Retains 'Buy' On The Stock; Hikes Target Price

Metro Brands’ FILA and Foot Locker ramp-up has been impacted due to challenges posed by BIS implementation..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Metro Brands Ltd. reported in-line Q3 results, with revenue growth recovering to ~11% YoY (versus 5% YoY in Q2), driven by a 43% YoY growth in Ecommerce sales. In-store sales grew ~8% YoY (versus 5% YoY in Q2), led by ~9% YoY area additions.Gross profit grew 8% YoY (in-line) as margin contracted ~125 bp YoY due to higher e-commerce sales and the residual impact of the FILA inventory liquidation (~50 bp impact).Ebitda was up ~13% YoY (in-line), as better cost controls offsets tad weaker gross margin, while adjusted PAT grew 22% YoY (in-line).Despite weaker store additions in 9MFY25, management maintained its guidance of opening 225 stores over FY25-26, with 140-145 store additions targeted for FY26.We lower our FY26-27E Ebitda by a marginal 1-2% on account of slightly weaker productivity assumptions (primarily due to a change in the format mix).Given the strong runway for growth in Metro, Mochi, and Walkway formats, along with significant growth opportunities in FILA/Foot Locker, we build in revenue/Ebitda/PAT CAGR of 13%/17%/20% over FY24-27E. We reiterate our Buy rating on Metro Brands with a revised target price of Rs 1,525 (earlier Rs 1,460) based on 70 times Mar’27 EPS (earlier Dec-26)..Click on the attachment to read the full report:.Top Stock Pick For 2025 - 'Buy' Metro Brands For An Upside Of 20%: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Metro Brands Q3 Review — Inline Results; Motilal Oswal Retains 'Buy' On The Stock; Hikes Target Price

The brokerage reiterates Buy rating on Metro Brands with a revised target price of Rs 1,525 (earlier Rs 1,460) based on 70 times Mar’27 EPS (earlier Dec-26).

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