External broker reports(aggregated public sources), Prabhudas Lilladhar

Prabhudas Lilladhar

Prabhudas Lilladher is one of India's leading research based financial services organisation.  

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only.  Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

External broker reports(aggregated public sources)

Prabhudas Lilladher is one of India's leading research based financial services organisation.

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We cut our FY25/26/27 EPS estimate 2.4/4.1/4.5% given 1) persistent tepid demand 2) Tepid store economics led by lower SSG &amp; opening up of store in Tier-2 &amp; Tier-3 cities &amp; 3) BIS issues continue to affect high-end international brand imports.</li><li>However, MBL operating parameters are on track with 1) addition of 5 new cities in 3Q (3 in Q2) &amp; 40 in FY26 2) healthy online/ Omni channel salience of ~11% to sales with strong growth of 37% YoY and 3) increase in share of &gt;3000 MRP sales by 100ppt YoY to ~54% of sales.</li><li>Longterm growth strategy is in place led by 1) geographical and store expansion (225 stores in 2 years) 2) brands licenses/acquisitions (Crocs, Fitflop, Birkenstock, New Era) 3) re-launch and scale up in FILA/ footlocker from FY26. Outlook We believe that valuations at 69.2xFY27 do not leave any upside in short term.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We cut our FY25/26/27 EPS estimate 2.4/4.1/4.5% given 1) persistent tepid demand 2) Tepid store economics led by lower SSG &amp; opening up of store in Tier-2 &amp; Tier-3 cities &amp; 3) BIS issues continue to affect high-end international brand imports.However, MBL operating parameters are on track with 1) addition of 5 new cities in 3Q (3 in Q2) &amp; 40 in FY26 2) healthy online/ Omni channel salience of ~11% to sales with strong growth of 37% YoY and 3) increase in share of &gt;3000 MRP sales by 100ppt YoY to ~54% of sales.Longterm growth strategy is in place led by 1) geographical and store expansion (225 stores in 2 years) 2) brands licenses/acquisitions (Crocs, Fitflop, Birkenstock, New Era) 3) re-launch and scale up in FILA/ footlocker from FY26. Outlook We believe that valuations at 69.2xFY27 do not leave any upside in short term.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Metro Brands - Soft Demand but Futuristic Investments Continue