Shares of Metro Brands fell over 4 per cent ahead of the footwear retail chain’s September quarter earnings set to be announced today. Metro Brands stock fell 4.48 per cent to Rs 890.10 against the previous close of Rs 931.90 on BSE. The stock, which forms part of the late investor Rakesh Jhunjhunwala’s portfolio, has been falling for the last two sessions.
Rekha Jhunjhunwala, wife of the late investor, is a shareholder in the company and owned a 14.43 per cent stake at the end of September quarter. Metro Brands stock is trading higher than the 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
The stock has zoomed 95 per cent this year and risen 9.43 per cent in a month. Total 0.29 lakh shares of the firm changed hands amounting to a turnover of Rs 2.70 crore on BSE. The stock hit its 52-week high of Rs 980 on October 6, 2022 and a 52-week low of Rs 426.10 on December 22, 2021. Market cap of the firm fell to Rs 24,494 crore on BSE.
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In the June quarter of the current fiscal, Metro Brands logged a consolidated net profit after tax of Rs 105.78 crore against a net loss of Rs 12.13 crore during the January-March quarter last year. Revenue from operations climbed two-fold to Rs 507.95 crore in the June quarter against a low base of the pandemic-impacted corresponding quarter. It stood at Rs 131.39 crore in the first quarter of FY21. Total expenses rose two-fold to Rs 377.51 crore in Q1 against Rs 159.59 crore of the year-ago period.
Meanwhile, JM Financial has assigned a target of Rs 1,070 on the stock. The brokerage said Metro was best placed within the footwear retail plays, thanks to its aggressive store expansion, operational efficiencies and successful scale up of newer and existing brands.
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Metro has the strongest brand equity in South and West India followed by North and East, it said, adding that consumer behaviour towards footwears have now changed, as they consider it as a fashion statement rather than value purchase few years ago. This, the brokerage said has led to increased premiumisation of products and improved store level unit economics across the sector, leading to re-rating of the sector.