Footwear Stock Showing Upside Potential, Rallied 2.23%, Buy For High Returns: Nuvama

Brokerage firm Nuvama in its recent report has picked Metro Brands Ltd. (METROBRA) with a "Buy" for a decent 17% potential upside with a target price of Rs 909 apiece. Metro Brand is a Footwear sector company that operated 598 Stores across 136 cities spread across 30 states and union territories in India. It is a midcap company with a market valuation of Rs 21,404.02 crore.

Stock's Market Price, Returns & 52 week Low & High

The shares of METROBRA last traded at Rs 787.70 apiece, up 2.23% from its previous close of Rs 770.55 apiece. The stock hit the 52 week high on 6 October 2022 at Rs 980.85 apiece and 52 week low on 12 May 2022 at Rs 505.10 apiece, respectively. It was listed on 22 December 2021 on the exchange.

The stock has given 0.38% positive return in 1 week. However, it has fallen 4.05% in 1 month and 8.2% in 3 months, respectively. It has given 31.55% positive return in 1 year. Since the date of listing it has given a 59.66% positive return.

Ticks all the right boxes; initiating coverage with a 'BUY' rating

According to Nuvama, METROBRA is one of the fastest-growing footwear retailers in India. Given its asset-light model with industry leading margins, premiumisation, aggressive store expansion funded via IPO proceeds and ability to operate and scale up multiple footwear brands, we expect store opening run-rate of 13% CAGR and 29% revenue CAGR over FY22-25. We initiate coverage with a 'BUY' rating and TP of INR909 (45x FY25E P/E, an upside of 18%), given its best-in-class business model, growth opportunities, execution capabilities, lean balance sheet, and quality management.

Disclaimer - The stock has been picked from the brokerage report of Nuvama. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.