Metro Brands Ltd. (METROBRAND) AI Stock Analysis

• Market Cap: ₹286.52B
• Dividend Yield: 1.48%
• Average Volume (3M): 5.12K
• Price to Earnings (P/E): 73.6
• Beta (1Y): 0.67
• Revenue Growth: 10.30%
• EPS Growth: -14.28%
• Country: IN
• Employees: 3,908
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 4.76
• Shares Outstanding: 272,459,230
• 10 Day Avg. Volume: 2,713
• 30 Day Avg. Volume: 5,124
• PEG Ratio: -5.38
• Price to Book (P/B): 16.65
• Price to Sales (P/S): 11.35
• P/FCF Ratio: 46.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹1,117.00 ▼(-4.56% Downside)

Metro Brands Ltd. scores well in financial performance due to strong revenue growth and profitability, which is the most significant factor. Technical analysis indicates a neutral trend with some bearish momentum, while the high P/E ratio suggests overvaluation. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Consistent Revenue Growth

Sustained revenue growth across multiple years reflects durable consumer demand and successful retail expansion. This trend supports economies of scale, funds brand investments and store rollouts, and underpins medium-term earnings resilience despite cyclical retail headwinds.

Robust Gross and EBITDA Margins

Healthy gross and EBITDA margins indicate effective sourcing and cost control across channels. Margin resilience provides operational flexibility to absorb input cost cycles, fund marketing/expansion, and maintain profitability even if top-line growth moderates over the next several quarters.

Strong Free Cash Flow Generation

Reliable free cash flow enhances financial optionality—supports capex for store/network growth, servicing and reducing debt, and potential reinvestment in digital channels. Strong cash conversion also cushions against short-term earnings volatility and funds strategic initiatives.

Negative Factors

Declining Net Income / EPS

Negative EPS growth and a recent net income decline signal pressure on bottom-line conversion. Over several quarters this can erode retained earnings available for reinvestment, limit balance sheet strengthening, and constrain the company’s ability to finance expansion without adding leverage.

Rising Leverage

An increasing debt-to-equity ratio demonstrates growing reliance on borrowings to fund growth. Higher leverage raises interest expense sensitivity and reduces financial flexibility, limiting capacity for opportunistic investments or cushioning against demand shocks in the medium term.

High Retail Fixed-Cost Exposure

Material exposure to company-operated stores entails fixed costs (rent, staffing, utilities) and capital intensity. Structural shifts in consumer behavior or retail footfall require sustained investment to optimize store footprint, making margins and cash flow vulnerable without continual productivity gains.

Metro Brands Ltd. Business Overview & Revenue Model

Company Description

Metro Brands Limited operates as a footwear specialty retailer in India. The company offers footwear for men, women, unisex, and kids under its own brands, including the Metro, Mochi, Walkway, Da Vinchi, and J. Fontini, as well as third-party brands, such as Crocs, Skechers, Clarks, Florsheim, and Fitflop. It also offers accessories, such as belts, bags, socks, masks, and wallets; and footcare and shoe-care products. The company offers its products through stores and distributors, as well as through online channels. As of March 31, 2021, it operated 586 Stores across 134 cities across 29 states and union territories in India. The company was formerly known as Metro Shoes Limited and changed its name to Metro Brands Limited in September 2018. Metro Brands Limited was founded in 1947 and is based in Mumbai, India.

How the Company Makes Money

Metro Brands generates revenue primarily through the sale of footwear and related accessories in its retail stores and online platforms. The company's revenue model includes direct sales from its extensive network of branded retail outlets, which are strategically located in major urban areas across India. Additionally, Metro Brands leverages e-commerce to reach a wider audience, increasing its sales through online channels. Key revenue streams include product sales from its proprietary brands, as well as collaborations and partnerships with other brands for exclusive offerings. The company's ability to adapt to market trends and consumer preferences, along with effective marketing strategies, contributes significantly to its earnings.

Metro Brands Ltd. Financial Statement Overview

Summary

Metro Brands Ltd. presents a solid financial profile characterized by consistent revenue growth, strong profitability, and a stable balance sheet. The company has effectively managed its operations and maintained healthy cash flows, supporting its growth strategy. Concerns include the recent decline in net income and increasing debt levels, but overall financial health remains strong.

Income Statement

Metro Brands Ltd. has demonstrated strong revenue growth, with a steady increase from 2021 to 2025. The gross profit margin and EBITDA margin remain robust, indicating efficient cost management and operational leverage. However, a decline in net income in the latest year slightly affects the net profit margin. Overall, the income statement reflects solid profitability and growth.

Balance Sheet

The company's balance sheet shows a healthy equity ratio, reflecting a stable financial structure with a significant proportion of assets financed by equity. The debt-to-equity ratio has increased but remains manageable, indicating that the company is leveraging its equity to fuel growth. Return on equity is strong, showcasing effective use of shareholders' funds, despite decreased net income.

Cash Flow

Metro Brands Ltd. has a strong cash flow position with consistent free cash flow generation. The operating cash flow to net income ratio indicates efficient conversion of profits into cash. Additionally, free cash flow growth is robust, suggesting good liquidity and capacity for future investments or debt reduction. Nonetheless, potential risks include fluctuations in capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.60B	25.07B	23.57B	21.27B	13.43B	8.00B
Gross Profit	14.77B	14.47B	13.69B	12.35B	7.77B	4.40B
EBITDA	6.64B	5.64B	5.32B	5.43B	3.08B	815.60M
Net Income	3.57B	3.51B	4.13B	3.61B	2.12B	682.01M
Balance Sheet
Total Assets	0.00	33.34B	33.53B	29.27B	23.14B	16.59B
Cash, Cash Equivalents and Short-Term Investments	6.30B	6.30B	8.47B	6.64B	7.84B	4.80B
Total Debt	0.00	12.27B	10.98B	9.43B	6.92B	5.67B
Total Liabilities	-17.38B	15.96B	14.60B	13.53B	10.27B	8.12B
Stockholders Equity	17.38B	17.09B	18.64B	15.48B	12.65B	8.28B
Cash Flow
Free Cash Flow	0.00	6.10B	4.74B	2.81B	1.72B	2.40B
Operating Cash Flow	0.00	6.98B	5.90B	3.81B	2.20B	2.65B
Investing Cash Flow	0.00	1.22B	-2.51B	-515.60M	-3.01B	-1.22B
Financing Cash Flow	0.00	-7.73B	-3.23B	-3.59B	1.16B	-1.27B

Metro Brands Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1170.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:METROBRAND, the sentiment is Neutral. The current price of 1170.35 is above the 20-day moving average (MA) of 1077.60, above the 50-day MA of 1119.62, and above the 200-day MA of 1160.40, indicating a bearish trend. The MACD of -29.19 indicates Positive momentum. The RSI at 44.31 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:METROBRAND.

Metro Brands Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOODLUCK	76 Outperform	₹37.04B	22.26	―	0.38%	9.57%	3.24%
CAMPUS	73 Outperform	₹77.25B	62.40	―	0.39%	9.42%	27.12%
DOLLAR	69 Neutral	₹17.83B	16.86	―	0.82%	11.71%	14.14%
METROBRAND	69 Neutral	₹286.52B	73.56	―	1.48%	10.30%	-14.28%
GOCOLORS	65 Neutral	₹20.92B	29.41	―	―	6.65%	2.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LUXIND	52 Neutral	₹28.04B	22.05	―	0.18%	16.32%	-20.97%

Metro Brands Ltd. Corporate Events

Metro Brands Files SEBI Demat Compliance Certificate for December Quarter

Metro Brands Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The company’s registrar and share transfer agent, MUFG Intime India Private Limited, confirmed that all securities received for dematerialisation during the quarter were processed within prescribed timelines, appropriately accepted or rejected, listed on the relevant exchanges, and that corresponding physical certificates were mutilated, cancelled and replaced with depository entries, underscoring the company’s adherence to regulatory norms in share handling and investor record-keeping.

Metro Brands Allots 25,250 Shares Under ESOP 2008

Metro Brands Limited has allotted 25,250 equity shares of ₹5 each to eligible employees under its Metro Stock Option Plan, 2008, following the exercise of stock options granted earlier. As a result of this ESOP-related issuance, the company’s paid-up share capital has risen marginally from ₹1,36,21,69,955 to ₹1,36,22,96,205, corresponding to an increase in the total number of equity shares from 27,24,33,991 to 27,24,59,241; the company has clarified that this allotment is not material in nature but continues to underscore its ongoing use of equity-based incentives.