Metro Brands (METROBRA IN) – Management Meet Update – Well-Positioned to ride tailwinds post GST cut – HOLD
Published on 25 Sep 2025
We believe Metro Brands is well-positioned to capture these demand tailwinds, supported by 1) strong brand positioning with Metro, Mochi and Crocs in the premium footwear. 2) expected growth pick-up in FILA as it is all set to open EBO’s as design inventory for a refreshed portfolio builds up. 3) Scalability in Foot Locker as a premium format in athleisure with steady addition in number of stores in Tier-1 cities 4) Clark’s acquisition is on track with good initial response given consumer awareness about the brand. MBL is building in clutch of premium global brands under its belt, success in finding the right mix in Walkway can accelerate growth rate in mass segment. We estimate 18.4% EPS CAGR over FY25–FY28 and assign DCF based TP of Rs1302 with implied PE of 60.3x on Mar’28 at TP (Rs1135 earlier). While the recent rally in the stock price limits near-term upside, any pullback will provide an opportunity for LT gains. Retain Hold.
