Softening growth hurts earnings; focus on new format Intune

Company
20 Jan 2024
5 Min read 
  • Shoppers Stop reported a moderate 2% YoY EBITDA growth in 3QFY24.
  •  The margin decline was attributed to weak demand and muted performance within Private Labels.
  •  Management expects the softness in demand to persist for another quarter.
  •  The company plans to focus on new store formats and the beauty segment to drive growth.
  •  The stock is currently trading at a healthy valuation of 11.8x EV/EBITDA on FY25E.
  •  The company plans to add 56 stores in FY24 and aims to reach 164 stores by FY26E.
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