Metro Brands has emerged as a stock in the spotlight after receiving bullish outlooks from major brokerage firms following its Q4 results. According to reports from ET Now, the company delivered strong Q4 performance with 20% YoY revenue growth and 21% YoY EBITDA growth, beating estimates. The brokerage firms highlighted robust store additions, improving Walkway metrics, and an expected FILA ramp-up as key growth drivers. The company's core fundamentals are exceptionally strong, with industry-leading EBITDA margins of ~33% and a zero-debt balance sheet, demonstrating operational prowess and brand strength.
Adding to the positive sentiment, Metro Brands has received strong support from India's ace investor Rekha Jhunjhunwala, whose exposure to the company increased significantly on a quarter-on-quarter basis. According to the latest shareholding data reported by ET Now, Jhunjhunwala's stake increased from 9.6% to 14.4%, an increase of nearly 5 percentage points. This translates to a holding value of ₹4,223.9 crores out of a total portfolio value of ₹64,987.4 crores. Notably, Jhunjhunwala's net worth surged by ₹650 crore in just one month, largely due to the appreciation in stock prices of Metro Brands and Star Health Insurance.
Major brokerage firms have issued optimistic targets for Metro Brands following the strong Q4 results. As reported by ET Now, Emkay Global Financial Services maintains a BUY rating with a target of ₹1,250, implying 17.1% upside. Goldman Sachs has set the most aggressive target of ₹1,310 with a 22.7% upside, while Nuvama Wealth Management recommends a HOLD with a target of ₹1,234, implying 15.6% upside. The brokerages cited strong festive and wedding demand, the company crossing the 1,000-store milestone, and expansion in operational capabilities as key growth drivers. Goldman Sachs also expects new brands like Clarks, Foot Locker, and FILA to drive growth, forecasting 20%+ EPS CAGR over FY26–FY28.
The company's financial metrics showed strong improvement in Q4. According to reports from ET Now, Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) came in at ₹238 crore, compared to ₹198 crore YoY. EBITDA margin improved slightly to 30.8% from 30.7% a year ago. The brokerages expect new brands like Clarks, Foot Locker, and FILA to drive growth, with Goldman Sachs forecasting 20%+ EPS CAGR over FY26–FY28. The company's prudent yet aggressive expansion, funded entirely by internal accruals, provides a significant margin of safety.
