This Rekha Jhunjhunwala stock is up 4%. Should you buy? What brokerages say? - Hindustan Times
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This Rekha Jhunjhunwala stock is up 4%. Should you buy? What brokerages say?

By | Edited by Mallika Soni
May 24, 2024 02:54 PM IST

The Rekha Jhunjhunwala-backed firm posted revenue from operations at ₹582.98 crore.

Shares of Metro Brands Ltd were up today (May 24) as the footwear company reported quarter results. Brokerages remained mostly neutral on the stock and see a muted quarter for the company ahead. Metro Brands recorded a profit of 155.57 crore- a jump of 126.3 per cent on year-on-year (YoY) basis for the fourth quarter of FY24. The Rekha Jhunjhunwala-backed firm posted revenue from operations at 582.98 crore and recommended a final dividend of 2.25 per equity share.

Rekha Rakesh Jhunjhunwala- backed Metro Brands recorded a profit of <span class='webrupee'>₹</span>155.57 crore- a jump of 126.3 per cent on year-on-year (YoY) basis for the fourth quarter of FY24.
Rekha Rakesh Jhunjhunwala- backed Metro Brands recorded a profit of 155.57 crore- a jump of 126.3 per cent on year-on-year (YoY) basis for the fourth quarter of FY24.

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Nuvama Institutional Equities said, “Fila inventory clearance is running a bit behind schedule and is likely to be cleared by H1FY25. On Footlocker, Metro plans to open the first store by October this year. Given the gradual recovery and sluggish Q1FY25 due to lower weddings, and elections, we are trimming FY25E and 26E EPS by 6 per cent and 4 per cent, respectively, it said with a 'hold' tag and a target price of 1,165.”

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Motilal Oswal Financial Services said with a 'buy' call, “We have not factored in Fila and Foot Locker earnings, but we believe it has revenue potential of 1,500-2,000 crore over the next 3-5 years. Since both the brands are in the initial stage of investing, we value Fila/Foot Locker at a 75 per cent discount to the potential value, which creates an option value of 160 , arriving at a valuation of 1,350 apiece.”

Prabhudas Lilladher gave a 'hold' rating on the stock and target price of 1,115.

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Rekha Rakesh Jhunjhuwala owned 2,61,02,394 equity shares- 9.60 per cent stake- in the company as of March 31, 2024. Her stake in the company is currently more than 3,000 crore.

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