Metro Brands Limited

Consumer Cyclical — Apparel Retail · NSE

₹903.00+₹4.45 (+0.50%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Metro Brands Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Metro Brands Limited operates as a footwear specialty retailer in India.

IndustryApparel Retail

SectorConsumer Cyclical

Employees5,179

Annual revenue₹2,863 Cr

How does it make money?

Turns over ₹2,863 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 5,179 employees supports ₹55.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹55.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are TRENT LTD, TITAN COMPANY LIMITED, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What is the outlook?

19 analysts covering the stock expect revenue to grow about 15.8% and earnings to grow about 21.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.8%

Est. earnings growth+21.0%

Analysts19

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +35% while net margin moved -16% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+35%

Margin effect-16%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 59.5x is demanding — it needs sustained high growth to justify
✓ P/E is 27% below its own historical median of 81.8x — cheap by its own standards
✗ P/B of 11.77x is a steep premium to book

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

47/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

59.5x

3Y Median

81.8x

40 monthly readings · mean 81.6x · range 55.9x–103.3x

Sector Median

69.9x

median of 3 sector peers

🟢Current valuation is approximately 27% below its 3y median of 81.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 69.9x.

vs. its own history

Cheap

81.8x median over 40 months · -27%

vs. sector peers

Fair

69.9x median of 3 peers · -15%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.8x

PEG

13.56

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 23.1% to 19.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 67% over 3 years, from ₹943 Cr to ₹1,570 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 27% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.4% CAGR
Latest reported year was 12.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 31%✓ 32.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹335 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹24,615 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

59.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.77x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.17

Profitable

Profitable on a per-share basis

ROE

21.2%

Strong

Strong capital efficiency

ROCE

19.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.75x

Moderate

Moderate leverage

Revenue Growth (YoY)

12.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.66%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹194 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

44.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

9.2%

Good

Assets are working hard

Operating Margin

15.0%

Average

Average margins

Net Margin

13.7%

Good

Strong bottom-line conversion

Current Ratio

2.96

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

874.8 / 912.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,126 Cr	₹2,356 Cr	₹2,507 Cr	₹2,863 Cr	+10.4%
EBITDA	₹718 Cr	₹761 Cr	₹832 Cr	₹939 Cr	+9.4%
EBITDA Margin	33.8%	32.3%	33.2%	32.8%	—
PAT (Net Profit)	₹361 Cr	₹413 Cr	₹351 Cr	₹411 Cr	+4.4%
EPS	₹13.26	₹15.11	₹12.84	₹15.06	+4.3%
ROE	23.4%	22.1%	20.5%	20.6%	—
ROCE	23.1%	19.1%	21.3%	19.6%	—
Total Debt	₹943 Cr	₹1,098 Cr	₹1,227 Cr	₹1,570 Cr	+18.5%
Free Cash Flow	₹281 Cr	₹474 Cr	₹610 Cr	₹335 Cr	+6.0%

🟢 Revenue has grown at 10.4% a year over 3 years.

🟢 EBITDA has grown at 9.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 32.8% over 3 years.

🟢 PAT (Net Profit) has grown at 4.4% a year over 3 years.

🟢 EPS has grown at 4.3% a year over 3 years.

🔴 ROE has fallen from 23.4% to 20.6% over 3 years (-2.7 pts).

🔴 ROCE has fallen from 23.1% to 19.6% over 3 years (-3.5 pts).

🔴 Total Debt has grown at 18.5% a year over 3 years.

🟢 Free Cash Flow has grown at 6.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,015 Cr

Total Liabilities

₹1,989 Cr

Cash & Equivalents

₹33 Cr

Operating Cash Flow

₹474 Cr

Capex

-₹139 Cr

Shareholding (proxy)

Institutional Holding

9.8%

Insider Holding

86.1%

Corporate Actions

Dividend Rate

₹6

Ex-Dividend Date

04 Sept 2026

Analyst Consensus

Recommendations

15 Buy · 5 Hold · 0 Sell

Target Price (Mean)

₹1,137.1

+25.9% vs CMP

Target Range

₹960 – ₹1,340

Peer Comparison

Company	P/E	ROE
TRENT LTD	87.2x	25.9%
TITAN COMPANY LIMITED	68.5x	36.7%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed1 negative3 general

Metro Brands Share Price - Live NSE: METROBRAND Stock Price & Chart

Upstox, 16 Oct

Rekha Jhunjhunwala portfolio stock Metro Brands slumps 30% so far in 2026| Should you buy, sell, or hold?

Livemint, 13 Oct

Metro Brands Share Price News: Retailing Valuation Check

Univest, 12 Oct

Metro Brands Limited Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next

Simply Wall Street, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Metro Brands gains 5% on posting healthy Q4 results; PAT up 24% YoY

Business Standard, 21 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Kotak Securities Upgrades Metro Brands To 'Add', But Cuts Target Price. Check Details

NDTV Profit, 26 AugAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Risk

MiddlingGrowth

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑