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Neutral Shoppers Stop; target of Rs 510: Motilal Oswal

Motilal Oswal recommended Neutral rating on Shoppers Stop with a target price of Rs 510 in its research report dated April 30, 2022.

May 03, 2022 / 12:04 PM IST
 
 
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Motilal Oswal's research report on Shoppers Stop


Adjusted for the one-off, Shoppers Stop (SHOP)’s EBITDA increased 13.8% YoY, below our estimate, as the company lost ~15-20% revenue led by Omicron in Jan-Feb’22. However, green shoots are visible as Mar’22 saw 40% YoY growth and April is witnessing double-digit growth v/s pre-Covid. Heightened pace of store additions and ramp up in private labels are likely to revive growth. We have raised our FY23E/24E EBITDA by ~5% each, on expectation of better growth and modeled 28% revenue CAGR over FY 22-24 backed by revenue recovery and higher store additions.


Outlook


However, the longevity of growth is uncertain as the lifestyle apparel category has reported muted growth outlook. We maintain our Neutral rating with a TP of INR510.


For all recommendations report, click here

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first published: May 3, 2022 12:04 pm
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