ICICI Securities has revised its target price for Shoppers Stop downward to Rs 350 from the earlier target of Rs 400, while maintaining a Hold rating on the stock. According to the brokerage's research report dated January 22, 2026, the revision reflects concerns about the retailer's near-term growth prospects despite ongoing strategic initiatives to drive growth in both premium and value segments.
The retailer's modest Q3FY26 revenue growth has cast a shadow over near-term growth momentum, as reported by ICICI Securities. Management attributed the muted performance to several factors including a festive shift, soft discretionary demand, and high pollution levels in North India. Despite these challenges, the company remains optimistic about growth revival as macroeconomic conditions improve.
ICICI Securities highlighted three key concerns that support their cautious stance on Shoppers Stop. The brokerage noted the company's low confidence on near-term revenue growth, its inability to convert revenue growth into profits, suggesting operational inefficiencies, and weak cost control that may restrict margin improvement and earnings growth even with strong sales performance.
The brokerage has modeled revenue and EBITDA CAGRs of 10.1% and 10% respectively over FY25–28E. As reported by ICICI Securities, the revised target price of Rs 350 is based on a DCF methodology, reflecting the company's current operational challenges and growth trajectory concerns.
