A leading footwear retail powerhouse is poised for significant growth, with Motilal Oswal projecting a substantial upside potential in its stock value. The company’s strategic acquisitions of global brands, impressive store performance metrics, and ambitious expansion plans to double its retail presence across 300 cities using internal funding have caught investors’ attention.
Share Price Movement
The share price of Metro Brands Limited reached an intraday high of 3.54 percent to Rs. 1,259.95 per share on Wednesday, an increase from its previous close of Rs. 1,213.25 per share. The market capitalisation now stands at approximately Rs. 33,839 crore as of January 01, 2025.
Share Price Surge: Why?
Motilal Oswal (MOSL) has set a target price of Rs. 1,460 on Metro Brands stock, indicating a 20.46% upside potential. The rationale includes the revenue boost from FILA and Foot Locker, despite delayed store launches, the high sales per square foot and quick payback periods of Metro Brands’ stores, and their expansion plans to double their store count using internal funds, reaching 300 cities with 873 stores.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, Metro Brands’s consolidated revenue from operations has increased by 5.21 percent YOY from Rs. 556 crore in Q2 FY24 to Rs. 585 crore in Q2 FY25 and increased by 1.56 percent QoQ from Rs. 576 crore in Q4 FY24.
The company’s consolidated net profit has increased 5.88% YoY from Rs. 68 crore in Q2 FY24 to Rs. 72 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has declined by 21.74 percent QoQ from Rs. 92 crore.
Market Outlook
The Indian footwear industry, valued at ₹123,500 crores in FY 2023-24, is expected to grow at an 11% CAGR, reaching ₹191,000 crores by FY 2027-28. Key growth drivers include economic growth, rising income, urbanisation, and shifting consumer preferences towards premium and branded footwear.
The growing popularity of sports and athletic footwear, boosted by health consciousness and an active lifestyle, further supports industry expansion. India’s branded footwear market, underpenetrated according to Goldman Sachs, presents significant growth potential.
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Shareholding Pattern
As of the September 2024 shareholding pattern, Metro Brands Limited is primarily held by the promoters at 71.95 percent, foreign institutional investors hold 3.39 percent, and the public with 17.64 percent.
About Company
Metro Brands Limited, initially known as Metro Shoes, is one of India’s top footwear and accessory retailers. Founded in 1955 in Mumbai, it started as a single store and has grown to 598 showrooms in 136 cities. They sell a variety of footwear under their brands, such as Metro, Mochi, Walkway, Da Vinchi, and J. Fontini, along with third-party brands like Crocs, Skechers, and Fitflop.
Operating under a “company owned and operated” model, they ensure a smooth shopping experience. Despite challenges like a 1996 controversy, Metro Brands has continued to prosper, and their successful IPO in December 2021 has set the stage for further growth, maintaining their position as a market leader.
Written By Fazal Ul Vahab C H
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