Shoppers Stop revenue grew 6% YoY in Q1 FY25 (vs +8%/+2% YoY in Q3/Q4), led by 5% like-for-like growth in Departmental format and ~two times growth in INTUNE.
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Motilal Oswal Report
Shoppers Stop Ltd.'s key focus areas remain:
profitability improvement in Departmental format;
revival of private label brands;
focus on the high-growth and margin-accretive Beauty segment; and
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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