Neutral Shoppers Stop; target of Rs 520: Motilal Oswal

Motilal Oswal's research report on Shoppers Stop

Shoppers Stop’s (SHOP) revenue growth accelerated to 10% YoY in 2QFY26 (vs. +6% YoY in 1Q), led by a 10-year high LFL of ~9.4% in departmental stores and ~70% YoY growth in INTUNE (driven primarily by store additions). Store additions remained muted, with four net store additions during the quarter. The scale-up in INTUNE has been slower than expected, with only seven store additions in 1HFY26 (well below management’s revised guidance of 30-40 stores for FY26).

Outlook

We value SHOP at 10x Dec’27E EV/EBITDA (implies ~26x Dec’27E pre-INDAS 116 EBITDA) to arrive at our revised TP of INR520 (earlier INR510). Reiterate Neutral.