Metro Brands (METROBRA IN) – Q1FY27 Result Update – Demand outlook mixed – Downgrade to ‘HOLD’
Published on 05 Aug 2026
MBL's growth plans remain on track, supported by 1) Entry into new cities. 2) Healthy online/omni-channel contribution, accounting for ~13% of total sales (9% YoY sales growth in Q1. 3) Accelerated store openings in Walkway format (3 in 1Q27) aimed at capturing the value-conscious consumer (Tier-2 cities) and positioning MBL as a comprehensive footwear destination. We see the key growth delta emerging from MetroActiv, Clarks, FILA and Foot Locker as MBL launches new EBO’s and complements its product range. We estimate 12.2% EPS CAGR over FY26-FY28 and assign a DCF based target price of Rs1034 (Rs1187 earlier). We expect back ended returns given rich valuations of 52.6xFY28 EPS. Cut to Hold.
