Metro Brands Ltd (METROBRAND) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lehar Footwears

Campus Activewe.

Metro Brands

Sreeleathers

Bata India

Liberty Shoes

Relaxo Footwear

Redtape

Khadim India

KSR Footwear

Why is Metro Brands Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 11.95% and Operating profit at 1.76% over the last 5 years

Negative results in Sep 25

PAT(Q) At Rs 67.69 cr has Fallen at -24.2% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST (Q) Lowest at 5.80 times
DEBT-EQUITY RATIO(HY) Highest at 1.77 times

With ROCE of 20, it has a Very Expensive valuation with a 12.1 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.06%, its profits have fallen by -14.2%

Below par performance in long term as well as near term

Along with generating -12.06% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Metro Brands for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Metro Brands

-12.06%

-0.39

31.20%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.95%

EBIT Growth (5y)

1.76%

EBIT to Interest (avg)

6.41

Debt to EBITDA (avg)

1.54

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.82

Tax Ratio

29.50%

Dividend Payout Ratio

155.30%

Pledged Shares

Institutional Holding

11.24%

ROCE (avg)

24.96%

ROE (avg)

20.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

16.29

EV to EBIT

60.11

EV to EBITDA

38.50

EV to Capital Employed

12.05

EV to Sales

11.54

PEG Ratio

Dividend Yield

1.84%

ROCE (Latest)

20.05%

ROE (Latest)

19.57%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CF(Y)

Highest at Rs 697.53 Cr

DPR(Y)

Highest at 155.30%

-14What is not working for the Company

PAT(Q)

At Rs 67.69 cr has Fallen at -24.2% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 5.80 times

DEBT-EQUITY RATIO(HY)

Highest at 1.77 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.26 times

INTEREST(Q)

Highest at Rs 29.44 cr

PBT LESS OI(Q)

Lowest at Rs 62.94 cr.

EPS(Q)

Lowest at Rs 2.49

Loading Valuation Snapshot...

Here's what is working for Metro Brands

Operating Cash Flow - Annually

Highest at Rs 697.53 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Dividend Payout Ratio (DPR) - Annually

Highest at 155.30%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Metro Brands

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 62.94 cr has Fallen at -39.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 103.26 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 67.69 cr has Fallen at -24.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 89.35 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 5.80 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 29.44 cr

in the last five quarters and Increased by 24.32 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 62.94 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 2.49

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 1.77 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 2.26 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio