Hold Shoppers Stop: target of Rs 350 : ICICI Securities

ICICI Securities recommended hold rating on Shoppers Stop with a target price of Rs 350 in its research report dated January 22, 2026.

Broker Research

January 30, 2026 / 21:07 IST

Hold

ICICI Securities's research report on Shoppers Stop

Shoppers Stop (SHOP)’s modest Q3FY26 revenue growth despite its ongoing strategic initiatives – to drive growth in both premium and value segments – casts a shadow over near-term growth momentum. Management held festive shift, soft discretionary demand and high pollution levels in North India responsible for the muted performance. It also remains sanguine on growth revival in the near term, as macros turn favourable. Our cautious stance too remains intact given SHOP’s: 1) low confidence on near-term revenue growth; 2) inability to convert revenue growth into profits, suggesting operational inefficiencies; and 3) weak cost control potentially restricting margin improvement and earnings growth, even if sales growth remains strong. Retain HOLD with a revised price target of INR 350 (vs. INR 400 earlier).

Outlook

We model revenue/EBITDA CAGRs of 10.1%/10% over FY25–28E and maintain HOLD, with a DCF-based revised target price of INR 350 (vs. INR 400 earlier)

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