Motilal Oswal has given Neutral recommendation for Shoppers Stop with a target price of Rs. 355 in its research report issued on Oct 21, 2021

Motilal Oswal’s research report on Shoppers Stop

Standalone revenue grew 2.2x YoY (18% beat) on a low base of last year’s lockdown, with EBITDA turning positive. However, it still remained 25% below pre-COVID levels. New initiatives like opening of 20 smaller size stores over the next six quarters, growth in its private label mix, and increased focus on high growth beauty business offers a good growth opportunity. However, its slow growth track record in similar areas in the past and weak footfalls in the Lifestyle Apparel category makes us hawkish.


We have raised our FY23E EBITDA by 9%, but maintain our Neutral stance with a revised TP of INR355/share.

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