Metro Brands shares rise over 5% post Q1 results
Metro Brands dropped 5% in early trading but later rebounded by over 5% to reach Rs 1,097 during Wednesday's intraday trade on BSE following the release of June quarter results. The company reported a consolidated profit for the June quarter at Rs 93.5 crore, down by 11.6% from Rs 105.78 crore in the same quarter last year, impacted by the weak operating margin. The total revenue of the company stood at Rs 582.52 crore, rising 14.6% from Rs 507.95 crore in the year-ago quarter.
At the operating level, EBITDA increased by 2% to Rs 186.6 crore in the first quarter of this fiscal over Rs 182.9 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 32% in the reporting quarter as compared to 36% in the corresponding period in the previous fiscal. Metro Brands recorded the highest-ever quarterly sales of e-commerce sales (including omnichannel) of Rs 61 crore.
Growth momentum in e-commerce sales (including omni channel) continues as sales grew 63%. The store expansion is on track with a net addition of 27 stores (8 new cities covered in Q1FY24) across all formats during the quarter, Metro Brands said. At 11.14 am, the scrip was trading 4.5% higher at Rs 1,087.6 on BSE.
On a year-to-date basis, the stock has surged over 25%, while it has rallied 42% in the last one year. As per Trendlyne data, the average target price of the stock is Rs 999, which shows a downside of 8% from the current market prices. The consensus recommendation from 12 analysts for the stock is a BUY.
The Relative Strength Index (RSI) is at 52.1. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is at 25.4, which is above its center and signal line, and this is a bullish
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