Consumer Durables
Metro Brands is a prominent footwear company in India, trading under the stock ticker METROBRAND. With a substantial market capitalization of Rs. 30,494.2 Crores, the company specializes in retailing footwear for various demographics, including men, women, kids, and unisex options.
The company offers a wide range of footwear under its own brands such as Metro, Mochi, Walkway, and daVinchi. In addition to its proprietary brands, Metro Brands also carries third-party brands like Crocs, Foot Locker, FILA, FitFlop, Cheemo, Proline, Vans, and Biofoot. Beyond footwear, they provide various accessories, including belts, bags, socks, wallets, and clutches, as well as footcare and shoe-care products.
Metro Brands operates through both physical retail stores and online channels, ensuring accessibility to its customers. Originally known as Metro Shoes Limited, the company rebranded in September 2018 and has its headquarters in Mumbai, India.
In terms of financial performance, Metro Brands has shown a trailing 12-month revenue of Rs. 2,541.9 Crores and has been a profitable enterprise, yielding a profit of Rs. 414.7 Crores over the last four quarters. The company's revenue growth over the past year was 6.7%. Furthermore, it rewards its investors with dividends, currently offering a yield of 1.76% per year and having returned Rs. 19.75 dividend per share in the last 12 months. However, the company has diluted its shareholder stakes by 0.2% over the past three years.
Investor Care | |
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Dividend Yield | 1.84% |
Dividend/Share (TTM) | 19.75 |
Shares Dilution (1Y) | 0.07% |
Diluted EPS (TTM) | 15.06 |
Financial Health | |
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Current Ratio | 3.08 |
Debt/Equity | 0.00 |
Debt/Cashflow | 0.00 |
Technicals: Bullish SharesGuru indicator.
Balance Sheet: Strong Balance Sheet.
Insider Trading: There's significant insider buying recently.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Size: Market Cap wise it is among the top 20% companies of india.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Profitability: Very strong Profitability. One year profit margin are 16%.
Momentum: Stock has a weak negative price momentum.
Comprehensive comparison against sector averages
METROBRAND metrics compared to Consumer
Category | METROBRAND | Consumer |
---|---|---|
PE | 70.80 | 63.86 |
PS | 11.55 | 2.00 |
Growth | 6.7 % | 8.1 % |
METROBRAND vs Consumer (2022 - 2025)
Understand Metro Brands ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Aziza Malik Family Trust (Trustee - Farah Malik Bhanji) | 28.08% |
Rafique Malik Family Trust (Trustee - Farah Malik Bhanji) | 27.68% |
REKHA RAKESH JHUNJHUNWALA | 4.79% |
ALISHA RAFIQUE MALIK | 2.9% |
KOTAK MAHINDRA TRUSTEE CO LTD A/C KOTAK QUANT FUND | 2.38% |
UTI-MID CAP FUND | 1.51% |
Zarah Malik Family Trust (Trustee - Rafique Abdul Malik) | 1.46% |
Farah Malik Family Trust(Trustee - Rafique Abdul Malik) | 1.46% |
Zia Malik Family Trust (Trustee - Rafique Abdul Malik) | 1.46% |
Sabina Malik Family Trust (Trustee - Rafique Abdul Malik) | 1.46% |
SABINA MALIK HADI | 1.45% |
ZARAH RAFIQUE MALIK | 1.45% |
ZIA MALIK LALJI | 1.45% |
FARAH MALIK BHANJI | 1.44% |
RAFIQUE ABDUL MALIK | 0.99% |
AZIZA RAFIQUE MALIK | 0.5% |
RUKSHANA KURBANALI JAVERI | 0.09% |
MUMTAZ JAFFER | 0.01% |
SULEIMAN SADRUDIN BHANJI | 0.01% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
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Market Cap | 29.18 kCr |
Price/Earnings (Trailing) | 70.37 |
Price/Sales (Trailing) | 11.48 |
EV/EBITDA | 35.89 |
Price/Free Cashflow | 64.71 |
MarketCap/EBT | 60.83 |
Fundamentals | |
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Revenue (TTM) | 2.54 kCr |
Rev. Growth (Yr) | 11.49% |
Rev. Growth (Qtr) | 19.3% |
Earnings (TTM) | 414.69 Cr |
Earnings Growth (Yr) | -3.75% |
Earnings Growth (Qtr) | 32.48% |
Profitability | |
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Operating Margin | 18.87% |
EBT Margin | 18.87% |
Return on Equity | 20.71% |
Return on Assets | 11.56% |
Free Cashflow Yield | 1.55% |
Detailed comparison of Metro Brands against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
BATAINDIA | Bata IndiaFootwear | 15.67 kCr | 3.56 kCr | -0.03% | -10.55% | 44.99 | 4.4 | +1.55% | +31.72% |
RELAXO | Relaxo FootwearsFootwear | 10.43 kCr | 2.87 kCr | +2.99% | -49.58% | 59.45 | 3.64 | -3.19% | -13.28% |
CAMPUS | Campus ActivewearFootwear | 7.43 kCr | 1.56 kCr | +5.56% | -3.21% | 62.51 | 4.76 | +8.94% | +49.31% |
LIBERTSHOE | Liberty ShoesFootwear | 686.97 Cr | 657.74 Cr | +25.47% | +22.00% | 53.1 | 1.04 | +3.80% | +119.82% |
KHADIM | Khadim IndiaFootwear | 543.82 Cr | 629.19 Cr | +2.41% | -15.60% | 105.33 | 0.86 | -2.14% | -45.90% |
Summary of Metro Brands's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
Management provided an optimistic outlook, emphasizing a return to double-digit revenue growth (10% YoY in Q3), driven by improved performance across all banners. Key highlights include:
1. Financial Performance: EBITDA grew 13% (margin >32%), with PBT up 18%. Margins remain robust, guided to stay above 55% (gross) and ~30% (EBITDA).
2. Expansion Plans: Targeting 140"“145 store additions in FY26 to meet the 2-year goal of 225 new stores by FY26. Focus includes scaling Foot Locker (3 stores signed, dependent on BIS supply resolution), Fila (relaunch underway), and New Era (testing kiosks).
3. Segment Updates:
4. Market Trends: No consumer shift away from premiumization (55% of sales >INR 3,000). Demand resilient despite competitive discounting.
5. Challenges: Rental costs stabilizing (not declining), mall delays impacting store openings.
6. Long-Term Guidance:
7. Margins: Gross margin dipped 50 bps in Q3 (Fila liquidation impact), but structural drivers (premium mix, localization) remain intact.
Management remains confident in sustaining growth through disciplined execution, supply chain improvements, and leveraging India's footwear demand tailwinds.
Last updated: Jan 25
Major Questions and Answers from Metro Brands Limited Q3 FY '25 Investor Call
1. Question: Can you quantify the Fila inventory liquidation loss during the quarter in absolute figures?
Answer: The impact on gross margins due to Fila liquidation was approximately 50 basis points. Absolute figures were not disclosed, as discounted sales render the value less meaningful.
2. Question: Are you observing a shift in consumer sentiment from premium to mid-range categories due to economic slowdowns?
Answer: No shift observed. Over 55% of sales are from products priced above INR 3,000, indicating sustained premiumization across urban and rural markets.
3. Question: Why has the average selling price (ASP) remained stagnant at ~INR 1,500 for six quarters?
Answer: ASP stagnation is due to increased sales of lower-priced accessories and mix effects from banners like Crocs. Future disclosures may separate footwear ASPs for clarity.
4. Question: Why was store addition guidance revised downward for FY '25?
Answer: Delays in mall openings (requiring 50% occupancy commitment) and high retail space demand led to deferrals. Plans remain intact for 140"“145 stores in FY '26.
5. Question: What are Foot Locker, Fitflop, and New Era store addition targets?
Answer: Foot Locker expansion is cautious pending BIS clarity (3 stores signed). New Era is in testing with kiosks (150"“200 sq. ft.); no specific targets shared.
6. Question: How do you justify confidence in opening 140"“145 stores next year amid subdued consumption?
Answer: Rental cost tapering, signed LOIs delayed to FY '26, and focus on profitable stores with reasonable lease terms support the target.
7. Question: What is the revenue growth outlook for the next 2"“3 years?
Answer: Historically, 14% CAGR over 10 years. With new brands scaling (e.g., Fila, Foot Locker), 15"“18% CAGR is achievable over 2"“5 years.
8. Question: What caused the 130 bps gross margin contraction?
Answer: Fila liquidation (50 bps impact) and higher e-commerce contribution (11% vs. 10% earlier) diluted margins.
9. Question: How is the BIS certification progressing for Foot Locker supply?
Answer: Factories in Vietnam and Indonesia are being certified, easing supply constraints. Core brands (Metro, Mochi, Crocs) are unaffected due to local production.
10. Question: What is the Walkway strategy, given slow store growth?
Answer: Focused on testing in South/West markets to minimize seasonality. Green shoots in performance noted, but scaling requires refining sourcing, throughput, and product refresh.
11. Question: How did monthly sales (October"“December) perform?
Answer: October (strong Diwali), November (steady), December (slower due to competitors' early end-of-season sales). Tier-agnostic trends, linked to regional festivals.
12. Question: How will store additions impact sales per sq. ft.?
Answer: New stores in Tier 2/3 cities have lower sales/sq. ft. but prioritize profitability. Metrics like EBITDA/sq. ft. are more relevant than top-line dilution.
13. Question: Is Fila sourcing entirely domestic now?
Answer: Initial capsule collections are domestic. Production will scale with range expansion. Repositioning focuses on premium sports-fashion, attracting new customers.
14. Question: How is the Fila royalty structure aligned?
Answer: Royalty terms are realigned to sales ramp-up, with payments phased to match revenue growth over 3"“4 years. Specific percentages undisclosed.
15. Question: Why is the South region's revenue contribution declining?
Answer: Temporary blips; East expansion is a focus. Growth remains balanced across regions, with Tier 3/4 penetration planned for matured brands.
16. Question: Are Tier 2 sales lagging?
Answer: Tier 2 contribution is stable (23"“24% of revenue). No material slowdown observed; consistent with long-term trends.
17. Question: Are 140 store additions net or gross?
Answer: Net guidance, excluding Fila but including Foot Locker. Relocations are no longer counted as closures.
18. Question: What is the medium-term margin outlook?
Answer: EBITDA margins to hold ~30%, with gross margins influenced by sales mix (e.g., Foot Locker's lower margins offset by minimal operating costs).
19. Question: Why did revenue/sq. ft. decline despite better wedding dates?
Answer: Mix effect from Crocs' reduced contribution and Tier 3 store additions. Pre-COVID levels (INR 17.5K/sq. ft.) remain benchmarks.
20. Question: How many new cities will FY '26 stores cover?
Answer: 25"“40 new cities targeted, with 60% of stores in existing cities and 40% in new locations.
21. Question: Are rentals declining?
Answer: Rentals are stabilizing, not declining. Negotiations improved due to reduced retail euphoria. Metro prioritizes profitability over store count.
22. Question: What is New Era's potential?
Answer: Early-stage testing in kiosks and online. Complements sports ecosystem growth but won't be a major revenue driver.
23. Question: How do accessories impact ASP?
Answer: Low-cost, high-quantity accessories (e.g., Crocs' Jibbitz) dilute ASP despite minimal revenue contribution. Footwear ASPs may be disclosed separately.
24. Question: How did Fila's test launch perform?
Answer: Positive response in 90"“100 MBOs and 2 EBOs. Gradual scaling planned via 2"“3 annual drops, expanding to 300+ stores over time.
25. Question: What constrains Foot Locker growth?
Answer: BIS delays blocked "heat" product supply. Demand is strong; ASPs (INR 6,000"“19,000) and basket size are healthy.
26. Question: How is Crocs' North/East business affected?
Answer: Minimal impact; Metro retains existing stores. Crocs' focus shifts to South/West white spaces, with 20"“30 annual store additions.
27. Question: What is Walkway's progress (1"“10 scale)?
Answer: Rated 6/10. Challenges include sourcing efficiency, throughput, and product refresh. Testing precedes scaling.
28. Question: What is the cash utilization plan?
Answer: INR 900"“1,000 crore cash reserve. Dividends (25% of PAT), organic growth, and ROI-focused investments prioritized.
29. Question: Does Metro benefit from Foot Locker's online sales?
Answer: Supplies products to Nykaa, earning warehousing margins. Primary benefit remains in-store sales.