Hold Shoppers Stop; target of Rs 350: ICICI Direct

ICICI Direct's research report onShoppers Stop

SSL’s departmental store registered subdued topline growth of 3% YoY to Rs 910.3 crore vs. Rs 882.5 crore in Q4FY16. This was mainly on account of negative LTL sales growth of 1.1% and 3.3% decline in LTL volume growth (negative LTL sales growth for the first time since FY12).

Outlook

We would watch the progress on the recent initiatives that will be undertaken by the company. Hence, we have a HOLD recommendation on SSL with a target price of Rs 350 (SOTP based – 0.7x (departmental format) and 0.6x (HyperCity format) FY19E EV/sales).

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