Metro Brands (NSEI:METROBRAND) - Share price, News & Analysis

Q: What is the Fair Price of METROBRAND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

METROBRAND (₹934.75) is trading above our estimate of [[fair value]] (₹310.14)

METROBRAND fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	6/6
Financial Health	5/6
Dividends	2/6

METROBRAND Stock Overview

Metro Brands Limited operates as a footwear specialty retailer in India.

Rewards

Earnings are forecast to grow 16.55% per year

Earnings grew by 205.8% over the past year

Risk Analysis

No risks detected for METROBRAND from our risk checks.

Metro Brands Competitors

Trent

BSE:500251

₹493.9b

Go Fashion (India)

NSEI:GOCOLORS

₹71.8b

Ethos

NSEI:ETHOSLTD

₹22.6b

D. P. Abhushan

NSEI:DPABHUSHAN

₹8.9b

Price History & Performance

Summary of all time highs, changes and price drops for Metro Brands
Historical stock prices
Current Share Price	₹934.75
52 Week High	₹968.95
52 Week Low	₹426.00
Beta	0
1 Month Change	17.61%
3 Month Change	58.57%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	89.47%

Recent News & Updates

Aug 03

Earnings Beat: Metro Brands Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

The investors in Metro Brands Limited 's ( NSE:METROBRAND ) will be rubbing their hands together with glee today, after...

Shareholder Returns

	METROBRAND	IN Specialty Retail	IN Market
7D	7.7%	1.4%	-0.6%
1Y	n/a	36.6%	-3.0%

Return vs Industry: Insufficient data to determine how METROBRAND performed against the Indian Specialty Retail industry.

Return vs Market: Insufficient data to determine how METROBRAND performed against the Indian Market.

Price Volatility

Is METROBRAND's price volatile compared to industry and market?
METROBRAND volatility
METROBRAND Average Weekly Movement	7.2%
Specialty Retail Industry Average Movement	6.3%
Market Average Movement	5.9%
10% most volatile stocks in IN Market	9.2%
10% least volatile stocks in IN Market	3.8%

Stable Share Price: METROBRAND is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: METROBRAND's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1947	2,544	Nissan Joseph	https://www.metrobrands.com

Metro Brands Limited operates as a footwear specialty retailer in India. The company offers footwear for men, women, unisex, and kids under its own brands, including the Metro, Mochi, Walkway, Da Vinchi, and J. Fontini, as well as third-party brands, such as Crocs, Skechers, Clarks, Florsheim, and Fitflop. It also offers accessories, such as belts, bags, socks, masks, and wallets; and footcare and shoe-care products.

Metro Brands Fundamentals Summary

How do Metro Brands's earnings and revenue compare to its market cap?
METROBRAND fundamental statistics
Market Cap	₹253.84b
Earnings (TTM)	₹3.28b
Revenue (TTM)	₹17.19b

77.5x

P/E Ratio

14.8x

P/S Ratio

Is METROBRAND overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
METROBRAND income statement (TTM)
Revenue	₹17.19b
Cost of Revenue	₹7.12b
Gross Profit	₹10.07b
Other Expenses	₹6.80b
Earnings	₹3.28b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 14, 2022

Earnings per share (EPS)	12.07
Gross Margin	58.57%
Net Profit Margin	19.05%
Debt/Equity Ratio	53.8%

How did METROBRAND perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

19%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is METROBRAND undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for METROBRAND?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for METROBRAND. This is calculated by dividing METROBRAND's market cap by their current preferred multiple.
What is METROBRAND's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹253.84b

METROBRAND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	14.7x
Enterprise Value/EBITDA	42.4x
PEG Ratio	4.7x

Price to Earnings Ratio vs Peers

How does METROBRAND's PE Ratio compare to its peers?

METROBRAND PE Ratio vs Peers

The above table shows the PE ratio for METROBRAND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	78.2x
500251 Trent	136.1x	26.4%	₹493.9b
GOCOLORS Go Fashion (India)	90.8x	33.1%	₹71.8b
ETHOSLTD Ethos	63.9x	37.3%	₹22.6b
DPABHUSHAN D. P. Abhushan	22x	n/a	₹8.9b
METROBRAND Metro Brands	77.5x	16.5%	₹253.8b

Price-To-Earnings vs Peers: METROBRAND is good value based on its Price-To-Earnings Ratio (77.5x) compared to the peer average (78.2x).

Price to Earnings Ratio vs Industry

How does METROBRAND's PE Ratio compare vs other companies in the IN Specialty Retail Industry?

Price-To-Earnings vs Industry: METROBRAND is expensive based on its Price-To-Earnings Ratio (77.5x) compared to the Indian Specialty Retail industry average (39.2x)

Price to Earnings Ratio vs Fair Ratio

What is METROBRAND's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

METROBRAND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	77.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate METROBRAND's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of METROBRAND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: METROBRAND (₹934.75) is trading above our estimate of fair value (₹310.14)

Significantly Below Fair Value: METROBRAND is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.

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Future Growth

How is Metro Brands forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: METROBRAND's forecast earnings growth (16.5% per year) is above the savings rate (6.8%).

Earnings vs Market: METROBRAND's earnings (16.5% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: METROBRAND's earnings are forecast to grow, but not significantly.

Revenue vs Market: METROBRAND's revenue (17.1% per year) is forecast to grow faster than the Indian market (10.6% per year).

High Growth Revenue: METROBRAND's revenue (17.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: METROBRAND's Return on Equity is forecast to be high in 3 years time (24.2%)

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Past Performance

How has Metro Brands performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

14.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: METROBRAND has high quality earnings.

Growing Profit Margin: METROBRAND's current net profit margins (19.1%) are higher than last year (11.3%).

Past Earnings Growth Analysis

Earnings Trend: METROBRAND's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: METROBRAND's earnings growth over the past year (205.8%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: METROBRAND earnings growth over the past year (205.8%) exceeded the Specialty Retail industry 32.2%.

Return on Equity

High ROE: METROBRAND's Return on Equity (25.8%) is considered high.

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Financial Health

How is Metro Brands's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: METROBRAND's short term assets (₹13.7B) exceed its short term liabilities (₹4.3B).

Long Term Liabilities: METROBRAND's short term assets (₹13.7B) exceed its long term liabilities (₹6.0B).

Debt to Equity History and Analysis

Debt Level: METROBRAND has more cash than its total debt.

Reducing Debt: Insufficient data to determine if METROBRAND's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: METROBRAND's debt is well covered by operating cash flow (31.7%).

Interest Coverage: METROBRAND's interest payments on its debt are well covered by EBIT (8.3x coverage).

Balance Sheet

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Dividend

What is Metro Brands's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.24%

Current Dividend Yield

Dividend Yield vs Market

Metro Brands Dividend Yield vs Market

How does Metro Brands dividend yield compare to the market?
Segment	Dividend Yield
Company (Metro Brands)	0.2%
Market Bottom 25% (IN)	0.4%
Market Top 25% (IN)	1.6%
Industry Average (Specialty Retail)	0.2%
Analyst forecast in 3 Years (Metro Brands)	0.4%

Notable Dividend: METROBRAND's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: METROBRAND's dividend (0.24%) is low compared to the top 25% of dividend payers in the Indian market (1.63%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether METROBRAND's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if METROBRAND's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.5%), METROBRAND's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (35.6%), METROBRAND's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure

CEO

Nissan Joseph (57 yo)

1.25yrs

Tenure

₹19,100,000

Compensation

Mr. Nissan Joseph has been Chief Executive Officer at Metro Brands Limited since July 1, 2021. He has in the past worked with Payless Shoes Pty Ltd and Hickory Brands, Inc. He has also spent over five year...

Leadership Team

Experienced Management: METROBRAND's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: METROBRAND's board of directors are considered experienced (3.6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

NSEI:METROBRAND Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Shares	Max Price
27 Jan 22	Sell₹1,870,413	Pramod Sutar	Individual	3,000	₹628.41
24 Jan 22	Sell₹2,702,500	Dattatray Awate	Individual	4,700	₹575.00
24 Jan 22	Sell₹2,154,335	Sunildatt Pandey	Individual	3,750	₹576.00
24 Jan 22	Sell₹4,043,250	Rajesh Awate	Individual	6,750	₹599.00
20 Jan 22	Sell₹1,861,928	Sunildatt Pandey	Individual	3,000	₹625.00
19 Jan 22	Sell₹1,240,000	Dattatray Awate	Individual	2,000	₹620.00

Ownership Breakdown

What is the ownership structure of METROBRAND?
Owner Type	Number of Shares	Ownership Percentage
Institutions	13,667,128	5.0%
General Public	16,593,411	6.1%
Individual Insiders	50,326,500	18.5%
Private Companies	190,969,120	70.3%

Dilution of Shares: METROBRAND only recently listed within the past 12 months.

Top Shareholders

Top 25 shareholders own 93.6% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
28.15%	Aziza Malik Family Trust	76,447,600	₹71.5b	0%	no data
27.75%	Rafique Malik Family Trust	75,367,920	₹70.5b	0%	no data
7.66%	Farah Bhanji	20,809,400	₹19.5b	0%	no data
6.84%	Rafique Malik	18,576,000	₹17.4b	0%	no data
4.81%	Aryaman Jhunjhunwala Discretionary Trust	13,051,206	₹12.2b	0%	no data
4.81%	Aryavir Jhunjhunwala Discretionary Trust	13,051,206	₹12.2b	0%	no data
4.81%	Nishtha Jhunjhunwala Discretionary Trust	13,051,188	₹12.2b	0%	no data
3.35%	Alisha Malik	9,088,000	₹8.5b	0%	no data
0.8%	Kotak Mahindra Asset Management Company Limited	2,185,719	₹2.0b	0%	0.15%
0.67%	Sundaram Asset Management Company Ltd.	1,824,513	₹1.7b	0%	0.51%
0.58%	UTI Asset Management Company Limited	1,566,278	₹1.5b	4.05%	0.1%
0.55%	Tata Asset Management Limited	1,495,981	₹1.4b	153.78%	0.28%
0.5%	Aziza Malik	1,350,000	₹1.3b	0%	no data
0.39%	Goldman Sachs Asset Management, L.P.	1,046,880	₹978.6m	0%	0.01%
0.36%	IDFC Asset Management Company Limited	974,347	₹910.8m	-1.32%	0.31%
0.34%	HDFC Asset Management Company Limited	932,696	₹871.8m	-6.38%	0.03%
0.23%	Kotak Mahindra Asset Management (Singapore) Pte. Ltd	620,929	₹580.4m	0%	0.42%
0.21%	Invesco Ltd.	565,623	₹528.7m	-1.41%	no data
0.18%	Edelweiss Asset Management Limited	500,000	₹467.4m	-4.76%	0.16%
0.12%	Grantham Mayo Van Otterloo & Co. LLC	325,398	₹304.2m	0%	0.01%
0.12%	PineBridge Investments LLC	320,010	₹299.1m	0%	0.03%
0.12%	Principal Asset Management Pvt. Ltd.	314,277	₹293.8m	0%	0.41%
0.095%	Aditya Birla Sun Life AMC Limited	258,927	₹242.0m	-27.61%	0.02%
0.084%	Sohel Kamdar	226,800	₹212.0m	0%	no data
0.079%	Mahindra Manulife Investment Management Private Limited	214,668	₹200.7m	104.45%	0.32%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
543426	BSE (Mumbai Stock Exchange)	Yes	Equity Shares	IN	INR	Dec 2021
METROBRAND	NSEI (National Stock Exchange of India)	Yes	Equity Shares	IN	INR	Dec 2021

Data	Last Updated (UTC time)
Company Analysis	2022/10/04 00:00
End of Day Share Price	2022/10/03 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31