Motilal Oswal has issued a buy rating on Metro Brands with a target price of ₹1,215 in its research report dated April 02, 2026. According to reports from Moneycontrol, the brokerage firm is bullish on the stock following recent market corrections. The recommendation is based on ~40x March 2028 pre-IND AS EV/EBITDA valuation, implying 65x FY28E EPS. Following the recent correction, the stock now trades at 55x FY27 P/E, which is one standard deviation below its long-term one-year forward mean P/E.
As reported by Motilal Oswal, Metro Brands continues to guide a 15-18% long-term revenue CAGR. The confidence in delivering this growth guidance has improved due to early signs of replacement demand emerging after a lumpy wardrobe refresh post-Covid in FY23. Key growth drivers include acceleration in store openings with moderating rental inflation, strong traction and opportunity in partner brands such as Clarks and FILA, and acceleration of the Walkway (value) format.
According to Motilal Oswal's analysis, the company is expected to deliver ~15% growth with return to mid-single-digit same-store sales growth (SSSG). The firm projects ~10% annual footprint addition and annualization of contribution from stores opened last year. For the longer term, the brokerage models revenue/EBITDA/adjusted PAT CAGR of 15%/15%/11% over FY25-28E. The growth is expected to come from strong store economics and robust cashflow generation in core Metro and Mochi formats, large runway for growth in Walkway format, and significant opportunities in FILA/Foot Locker/Clarks.
As reported by Moneycontrol, the stock's re-rating trigger remains consistent double-digit growth. The company's strong store economics and robust cashflow generation in core formats, combined with significant growth opportunities in partner brands, position Metro Brands for continued expansion. The large runway for growth in the Walkway format and substantial opportunities in FILA/Foot Locker/Clarks brands support the positive outlook for the retail chain.
