Kotak Institutional Equities initiates India's Metro Brands with 'reduce'

Relaxo Footwears

15/12/2023 04:46

** Kotak Institutional Equities begins coverage of footwear
retailer Metro Brands  METB.NS  with "reduce" rating and fair
value of 1,250 rupees, 7.4% lower than current price of 1,349.4
rupees
    ** "While there is a lot to like, stock is fully priced" -
Kotak
    ** Says METB's average selling price of 1,450 rupees is
highest among listed players
    ** Expects compound annual growth rate of 18% in revenue
from FY23-FY26; says store network expansion is the primary
growth driver
    ** Mean rating of 15 analysts is "hold;" median PT is 1,231
rupees - LSEG data
    ** METB stock up 2.7%, taking YTD gain to 52.7%; rivals Bata
India  BATA.NS  and Relaxo Footwear  RLXO.NS  up 1.2% and 0.3%
this year

 (Reporting by Varun Vyas)
 ((varunvyas.hebbalalu@thomsonreuters.com))