Shares of Shoppers Stop climb more than 3% to hit record high After 819 on the BSE in Friday’s trading session, the company reported Q2 FY23 results, which were in line with estimates, as demand momentum from January 2022 continued into Q2.
Shoppers StopIts sales for the festive season will beat pre-Covid levels on demand for gifts from the country’s affluent people as well as occasion and winter wear, said Venu Nair, chief executive of Reuters, in an interview with Reuters, adding 60 percent in quarterly revenue. After reporting a jump of .
“We expect consumer sentiment, particularly within the premium space, to remain the same, hence we have modeled a revenue/EBITDA CAGR of 28%/51% in FY 2012-25. SSSG was +10% over pre-Covid levels highlighting the improvement in productivity. The improvement in operational metrics at pre-Covid levels reflects the underlying strength of the business. We continue to believe in a story of margin expansion led by beauty and personal brands,” said brokerage Philippe Capital with a ‘buy’ rating on the shares of Shoppers Stop. 965 each.
Shares of Shoppers Stop has given multibagger returns of over 139% in one year period, while multibagger stock Up about 145% so far in 2022 (YTD). The company said its store expansion plan is on track and it should open 12-15 stores during the year, with 6 stores expected to open in October and November.
“Under new management, the company is expected to improve its growth trajectory aided by improved consumer sentiment, in our view by accelerated small-size store expansion, increased private-label mix, and a focus on the high-growth beauty business. said ICICI Securities, which has maintained an additional rating on the stock with a target price of Rs. 850 per share. However, it sees low discretionary spending and execution challenges as key risks.
“Given the traction in demand, we are seeing a 11%/15% growth in FY23/24E EBITDA. We are maintaining the target price Maintain 745 and ‘hold’. Further re-rating triggers are higher margins, either through increased SSSG or/and private label mix,” said another brokerage Edelweiss.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.