Metro Brands - Worst Seems Over, Hold For Long-Term Gains: PL 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..PL Capital Report.Metro Brands Ltd. saw muted Q1 amid lower wedding days and poor demand however worst seems over as-Q2 is showing some green shoots across brands, despite heavy rains impact in some regions,H2 FY25 is expected to show improvement in demand led by festive and marriage season andrelaunch of FILA & footlocker. .BIS benefits have not flown to domestic players due to higher costs and exemption given to smaller players. However, relaunch of FILA and footlocker stores might be delayed, amid addition of Vietnam & Thailand into non-certified countries. Long- term growth outlook remains intact led by-geographical and store expansion (225 stores in two years) and brands licenses/acquisitions (Crocs, Fitflop, Birkenstock, New Era Caps, and Footlocker). .We expect Metro to return to double digit profit before tax growth in FY25 and 18.6% compound annual growth rate over FY25-27. Metro seems well placed among listed footwear players to ride India growth story, however valuations at 69.5 times-Sept26 will limit immediate upside. We assign Hold rating (under review earlier) and recommend accumulating stock on dips for long-term gains..Click on the attachment to read the full report:.Birla Corp - Near-Term Headwinds: HDFC Securities.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 - Worst Seems Over, Hold For Long-Term Gains: PL Capital

All hopes rest on sharper recovery in H2 FY25 led by festive season and pent up demand due to clubbing of weddings in Q3, Q4, says the brokerage.

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Metro Brands - Worst Seems Over, Hold For Long-Term Gains: PL Capital

All hopes rest on sharper recovery in H2 FY25 led by festive season and pent up demand due to clubbing of weddings in Q3, Q4, says the brokerage.

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