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Business News/ Markets / Stock Markets/  Jhunjhunwala stock Metro Brands near 52-week-high after surging 80% from 52W low: Buy post Q4 results?
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Jhunjhunwala stock Metro Brands near 52-week-high after surging 80% from 52W low: Buy post Q4 results?

Consumer discretionary firm Metro Brands ended the session on a higher note of 6% after the company declares impressive Q4 and FY23 earnings.

The shares of Metro Brands closed today on the BSE at ₹930.75 apiece up by 6.63% from the previous close of ₹872.85.Premium
The shares of Metro Brands closed today on the BSE at 930.75 apiece up by 6.63% from the previous close of 872.85.

Consumer discretionary firm Metro Brands ended the session on a higher note of 6% after the company declares impressive Q4 and FY23 earnings. The stock opened today at 843.95 apiece and touched an intraday high of 954.00 however it maintained its bullish trend traded near its 52-week-high level of 980 and ended the session at 930.75 apiece up by 6.63% from the previous close of 872.85 on the BSE.

During Q4FY23, the company reported consolidated revenue from operations of 544 Cr up by 35.0% YoY from 403 Cr in Q4FY22. During the quarter ended March 2023, the company reported an EBITDA of 144 Cr up by 10.8% YoY from 130 Cr in March 2022 quarter. The net profit of Metro Brands reached 69 Cr during the quarter under review down by 1.1% YoY from consolidated net profit of 70 Cr recorded during the year-ago quarter. 

On a standalone basis, the company recorded a revenue of Rs  514 Cr during Q4FY23 up by 29.8% YoY from 396 Cr in Q4FY22. Its EBITDA climbed by 18.8% from 128 Cr to 152 Cr. The standalone net profit of Metro Brands reached 82 Cr in Q4FY23 up by 20.8% YoY from 68 Cr in Q4FY22.

Commenting on the performance of the company Mr. Nissan Joseph, CEO, Metro Brands Limited, said,  “In FY 2022‐2023, we achieved a record‐breaking milestone by opening 115 stores, further solidifying our  presence in the market. We surpassed the benchmark of 2,000 crore in revenue, while simultaneously  enhancing  our  overall  profitability  metrics  in  this  fiscal  year.  The  discerning  affinity  exhibited  by  consumers towards our premium products has been highly gratifying, resulting in a steady growth in the  average selling price (ASP). As we progress, we are observing a moderation in near‐term sales growth, as  we transition from the initial surge due to pent‐up demand observed between October 2021 and June  2022." 

On December 1, 2022, Metro Brands acquired 100% capital of Cravatex Brands Limited (CBL). From the aforementioned date forward, it was a fully owned subsidiary of the company. PAT includes a 14 crore loss from CBL for Q4 at the consolidated level.

The shares of Metro Brands closed today on the BSE at 930.75 apiece up by 6.63% from the previous close of 872.85. The stock touched a 52-week-high of 980.00 on (06/10/2022) and a 52-week-low of 516.00 on (26/05/2022), indicating that at the current market price, the stock is trading 80.37% above the 1-year low and 5.02% below the 1 year high. As per the shareholding pattern of Metro Brands for January to March quarter of Q4FY23, Rekha Rakesh Jhunjhunwala held 1,30,51,188 fully paid up equity shares or 4.80% stake in the company.

Commenting on the technical outlook of the stock, A R Ramachandran, Co-founder & Trainer-Tips2trades said "Despite below average Q4FY23 results, Metro Brands stock price recovered from its day low to close slightly below its Daily resistance of 940. A daily close above 940 could lead to targets of 988-1025 in the near term. Support will be at 875."

Manoj Dalmia, Founder and Director, Proficient Equities said “Mar-2023 Quarterly Revenue is 563 Cr which showcases a growth of 35.1% YoY. Quarterly Net Profit of Metro Brands Ltd. As of Mar-2023 is 68 Cr which shows a growth of 0.4% YoY. Metro brands is a zero debt company. Ebitda up 10.6% at 143.6 crore versus the 163.1 crore estimated. It is expected that the company may take around 2-3 quarters more to become profitable. The company is seeing some growth in eCommerce business. Investors can buy when closing above at 978 level and can expect a target of 1200 in the coming days. Defensive investors can keep a stop loss of 5-6% whereas aggressive can buy at current levels with a larger stop loss."

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ABOUT THE AUTHOR
Vipul Das
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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Published: 24 May 2023, 04:21 PM IST
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