Shares of Rekha Jhunjhunwala-backed Metro Brands zoomed 12 percent intraday to hit a fresh 52-week high at Rs 1,293. There is no other trigger for the share price movement apart from the recent Prabhudas Lilladher report, disseminated on September 28, that issued an 'Accumulate' call.
As of 2.30 pm, shares of the company were trading at Rs 1,248.8 on the NSE, up 10.88 percent. Over the past six months, the counter has jumped 53.29 percent, outperforming the blue-chip benchmark Nifty 50 which has risen 11.26 percent over the same period.
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Brokerage ratings
Prabhudas Lilladher initiated coverage on Metro Brands, with an 'accumulate' rating. The brokerage house set the target price for the company at Rs 1,231 apiece, based on sales growth of 20.1 percent CAGR from FY23 to FY26. Additionally, the company's acquisitions of Crocs, FILA, Fitflop and other famous brands are among the reasons why Metro Brands has a 'huge runway for growth'.
Alternatively, in a report, HDFC Securities maintained its ‘Sell’ rating on the footwear major, with a target price of Rs 840. "Normalizing KPIs are likely to put pressure on margins over FY23-26. Hence, at 59x Sep-25 P/E (for a 15% EPS CAGR story over FY23-26), the valuation seems oversized," said HDFC Securities on September 29.
Technical view, shareholding pattern
The firm's market cap clocked in at Rs 33,867.7 crore. Its RSI stands at 62.1, indicating that the counter is neither in the overbought territory nor the oversold territory.
The one-year beta is at 0.55, indicating that the scrip has extremely low volatility. Metro Brands shares are trading higher compared to its 5-, 10-, 20-, 50-, 100- and 200-day moving averages. On October 3, over 32 lakh shares of Metro Brands exchanged hands. In comparison, the 20-day average volume is 1.4 lakh equity shares.
While the promoter held a stake of 74.2 percent in the company, as of June 2023, late Rakesh Jhunjhunwala's wife, Rekha Jhunjhunwala, held 9.6 percent in Metro Brands. FIIs owned a stake of 2.6 percent in the company, while DIIs had a shareholding of 5.7 percent. The public had a shareholding of 17.5 percent in the company.
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