The shares of Metro Brands Ltd reached an all-time high of ₹ 948.85 apiece on Tuesday’s intraday trades, on the back of a strong business outlook. The stock surpassed its previous high of ₹ 935, touched on September 23, 2022.
This stock forms a part of ace investor Rakesh Jhunjhunwala’s portfolio. As per the latest filings, for the June quarter, his holdings include 39,153,600 shares of the company worth ₹ 3407.5 crores. This implies a 14.4% stake in the company.
Metro Brands registered the highest-ever sales with strong sales performance across all its formats, regions/tiers & cities, product categories/gender & price points. Its total revenue from operations rose 288 per cent year-on-year to ₹ 517 crores from ₹ 131 crores in the year-ago quarter.
The company’s margins have improved due to the negligible contribution of discounted sales and improvement in the overall sales mix in Q1FY23. reported a consolidated net profit of Rs 105.78 crore as against a net loss of Rs 12.13 crore in the quarter that ended June 2021 (Q1FY22).
Clarifying about the increase in the share price, the company on September 21 said that the volume of the shares traded was purely based on market conditions and the Company is not responsible for any increase or fall in volume or any changes in stock market conditions.
Brokerage firm Motilal Oswal has a buy rating on the shares with a target price of ₹ 1000. The shares closed at ₹ 871.25 and the given target implies an upside of 14.77%.
In fact, the share price of the company increased by a whopping 49.88% in the past two months from ₹ 581.30 to ₹ 871.25 apiece. As per year-to-date data, the shares have gained 91.63%. If an investor would have invested ₹ 1,00,000 in the shares of the company at the beginning of this year, the value of their holdings would have been ₹ 1,91,630 today!
Metro Brands is one of the largest India footwear brands in India. It retails footwear under its own brands like Metro, Mochi, Walkway, Da Vinchi and J. Fontini. Further, it retails certain third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop.
Written by Simran Bafna
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