Kotak Institutional Equities has upgraded Metro Brands shares to 'Add' from 'Reduce' rating, while simultaneously cutting the target price to ₹1,000 from ₹1,050 earlier. According to reports from Essential Business Intelligence, the brokerage firm believes the listed footwear players have seen some growth improvement post-GST rate cut. The upgrade comes despite the significant stock decline, with Metro Brands share price falling over 23% this year so far, which Kotak Equities suggests can be a better entry point for investors. The brokerage firm highlighted that normalizing footwear imports was identified as a lead indicator for Metro's S&A acceleration.
The stock has experienced notable declines across multiple timeframes, with 10% drop in one month and 14% decline in three months. As reported by Essential Business Intelligence, the stock has dropped 23% on a year-to-date basis and has shed 20% in one year. Metro Brands shares have slipped 31% over the past three years, indicating a longer-term downward trend despite recent volatility. On Tuesday, Metro Brands share price ended 1.49% higher at ₹922.90 apiece on the BSE, as reported by Essential Business Intelligence.
According to Kotak Equities, normalizing footwear imports was identified as a lead indicator for Metro's S&A acceleration. The brokerage firm highlighted that Metro Brands' value-priced footwear brand 'Walkway' could be a meaningful long-term driver for the company. Metro Brands share price has fallen over 23% this year so far, which can be a better entry point for investors, according to Kotak Institutional Equities. The firm believes the listed footwear players have seen some growth improvement post-GST rate cut, suggesting potential for recovery in the sector.
