IIFL Securities Stock Idea: Buy Metro Brands with Target Rs 1285

IIFL Securities has issued a buy recommendation for Metro Brands, targeting a price of Rs 1285. The current market price of Metro Brands is Rs 1239, indicating a potential upside of 3.7%. The brokerage firm cites the company's strong brand recognition, wide distribution network, and healthy financials as factors supporting its bullish stance. Metro Brands has a market capitalization of over Rs 12,000 crore and is one of the leading footwear retailers in India.

About Metro Brands:

Metro Brands Limited is an Indian footwear retailer headquartered in Mumbai. It operates a chain of over 600 retail stores across India, as well as an online store. The company offers a wide range of footwear for men, women, and children, including shoes, sandals, slippers, and boots. Metro Brands also owns the brands Mochi, Metro Shoes, Walkway, Da Vinchi, and J. Fontini. The company has a strong presence in the Indian footwear market and is known for its quality products and customer service.

52 Week Price Trend:

Metro Brands is currently trading at Rs 1239, significantly below its 52-week high of Rs 1441.2. However, it has rebounded from its 52-week low of Rs 764.35, indicating potential for recovery. The stock's movement suggests a period of consolidation, with buyers and sellers attempting to establish a new equilibrium. Investors may consider monitoring the stock's performance closely to determine whether it breaks out of its current range and establish a new trend.

Stratzy's MOST Analysis:

Metrobrand, as per Stratzy's MOST Framework, has been rated AAA, indicating low fundamental risks. This rating is based on four pillars: Management, Outlook, Safety, and Trend. In terms of Management, Metrobrand has a strong track record of execution and a clear strategy for future growth. Its Outlook is positive, with the company expected to benefit from favorable industry trends. Safety-wise, Metrobrand has a solid financial foundation and low debt levels. Lastly, the Trend analysis suggests that the company is poised for continued growth.

Company's Fundamentals:

Metro Brands (NSE: METROBRAND) is a leading footwear retailer in India with a vast network of stores across the country. At the moment, the company's Stock PE stands at 95.73, indicating that investors are willing to pay 95.73 times the company's annual earnings per share. The Price to Book (PB) Ratio of 18.63 suggests that the market value of the company's shares is 18.63 times its book value, indicating a premium valuation. Despite its high valuation, Metro Brands offers a modest Dividend Yield of 0.35%, implying that investors primarily seek capital appreciation rather than dividend income from the stock.

Fundamental and Technical information provided in this blog were last updated on 18 Jun, 2024

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