Rakesh Jhunjhunwala Stocks: This Big Bull-backed footwear stock may grow by 20% on steady growth trajectory, says ICICI Securities
Ace investor Rakesh Jhunjhunwala holds 39,153,600 equity shares, which translates into a 14.4 per cent stake in Metro Brands, as per the latest shareholding pattern of the company available on the exchanges.
Billionaire investor Rakesh Jhunjhunwala-backed this footwear company – Metro Brands shares have the potential to surge by nearly 20 per cent on the back disciplined and steady growth trajectory, a domestic brokerage firm ICICI Securities said while maintaining a Buy stance on the counter.
Metro Brands is one of the largest Indian footwear speciality retailers present in India and has the right mix of brands, which includes three umbrella brands and two EBO (exclusive brand outlets) tie-ups providing a growth runway in terms of store addition, the brokerage stated.
Ace investor Rakesh Jhunjhunwala, who is also called as the Big Bull of the Indian stock market, holds 39,153,600 equity shares, which translates into a 14.4 per cent stake in Metro Brands, as per the latest shareholding pattern of the company available on the exchanges.
The company is focused on financial discipline along with balance sheet strength provides confidence in the execution, besides, it has an optimized mix of in-house brands and third-party brands in MBOs (Metro, Mochi and Walkway) to drive customer footfalls, improve sales density and gross margins, ICICI Securities said further.
The brokerage sees revenue / EBIDTA (earnings before interest, taxes, depreciation, and amortization) / PAT (profit after tax) CAGR (Compound Annual Growth Rate) of 30 / 28 / 31 per cent over FY22-24E and initiated at BUY with a target price of Rs 700 per share (20 per cent Upside).
In terms of key risks, ICICI Securities said the delay in store addition and likely increased competition from regional players trying to premiums.
The stock on Friday closed by over 0.5 per cent lower to Rs 584 per share on the BSE as compared to flat with negative bias BSE Sensex. The scrip in the last five sessions has jumped nearly 10 per cent, while it has gained around 29 per cent year-to-date.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Gold and Silver rate today (May 14, 2024): Precious metals trade in green; yellow metal above Rs 72,000 once again, white metal near Rs 85,350
Top 7 Stocks to Track: This defence PSU multibagger can give 45% return; food delivery app stock likely to rise 19%
Mutual Fund SIP: Invest Rs 1000 per month to grow your corpus to over Rs 3.5 core at retirement, know calculations
06:16 PM IST