After flat position in the year 2024, Rekha Jhunjhunwala (RJ) stock can give 20 percent returns in 2025. Brokerage firm MOFSL has said in its new note that strong growth prospects, internal funding, excellent execution and store economics have been mentioned in these shares.
As per the shareholding pattern for the September quarter, Jhunjhunwala holds 14.4 per cent stake in the footwear retailer, which is worth Rs 4,735 crore as of Wednesday’s trading price. The stock was priced at Rs 1,211 per share, but MOFSL finds the stock to be worth Rs 1,460 per share, showing an increase of 20.46 percent. This is Metro Brands Ltd. Is. The stock has shown a decline of 3.38 percent in the last one year.
MOFSL said Metro Brands’ stock performance in 2024 remained flat due to both internal and external factors. Internal reasons included the liquidation of older FILA inventory, which impacted gross margins and a decrease in revenue per square foot, which was due in part to Crocs opening new stores.
It also noted that weak spending and BIS-related challenges over the last few quarters weighed on Metro Brands’ performance and posted a modest revenue growth of 2 per cent in H1FY25. Whereas Metro Brands Ltd. This helped it maintain its Gross, Ebitda and PAT margins at 57 per cent, 28 per cent and 14 per cent, respectively, which were within the guided range in H1FY25, MOFSL said.
The brokerage says Metro Brands’ excellent store economics (Rs 20,000 SPSF, 2 years store payback), coupled with its strong cost controls, is enabling it to outperform its other footwear peers. Following the liquidation of FILA inventory and increase in the number of wedding days, we expect SSSG and margins to improve from H2FY25.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.