Motilal Oswal's research report on Shoppers Stop
Shoppers Stop continued its stellar performance with 29% YoY revenue growth (in line), led by record mid-teens SSSG. The gross margin saw a YoY improvement of 310bp, primarily led by higher brand commission from meeting year-end sales target, and improvements in the private label and beauty mix. Subsequently, EBITDA saw 2x YoY jump and PAT turned positive YoY. The addition of 10 new stores in Departmental and Beauty segments, along with mid-single-digit SSSG and increased share of private label and beauty biz is expected to drive revenue/EBITDA CAGR of 14%/17% over FY23-25E. With soft footfall trends, and price hike benefits behind, SSSG growth will be a key monitorable.
Outlook
We reiterate our Neutral rating on the stock with a TP of INR705.
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