Metro Brands Q1 Results Review - Demand Challenges Hampered Performance: Dolat Capital

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..Dolat Capital Report.Metro Brands Ltd.’s Q1 FY25 results missed our estimates with revenue de-grew by 1.1% due to subdued demand conditions on account of harsh summer season, elections and lower wedding dates during the quarter.Metro Brands opened 15 (net) new stores during Q1 FY25 - taking the total count to 851 and aims to add 225 stores over next couple of years. We believe that lost momentum will be regained in H2 FY25E driven by the festive season, penetration opportunities and ongoing brand additions. Further, continuous premiumisation is expected to keep the average selling price higher.We downward revise our FY25/26E EPS estimates by 3.5/2.9% at Rs 14.4/20.1 to factor in Q1 performance and muted demand across industry. However, we continue to believe that Metro would outperform peers given its-premium brand positioning,higher aspirations,demographic support andlow penetration. .Considering the recent run-up in the stock price, we maintain our ‘Reduce’ rating with a revised target price of Rs 1,312 (Rs 1,177 earlier) valuing at 65 times FY26E earnings per share..Click on the attachment to read the full report:.Metro Brands Q1 Results: Net Profit Declines By 1% To Rs 92.27 Crore.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 Q1 Results Review - Demand Challenges Hampered Performance: Dolat Capital

Company's revenue growth in the near term is expected to remain under pressure due to a smaller number of wedding days and demand constraints, says the brokerage.

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Metro Brands Q1 Results Review - Demand Challenges Hampered Performance: Dolat Capital

Company's revenue growth in the near term is expected to remain under pressure due to a smaller number of wedding days and demand constraints, says the brokerage.

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