Stock to Buy: Financially Strong Stock That Can Deliver Returns of Up to 30%

Synopsis: Metro Brands shares jump 5% after Goldman Sachs raises target to Rs 1,340, seeing 30% upside, citing strong 3QFY26 sales, EBIT growth, and sustainable profitability.

The share of this company, which offers a diverse collection including casual shoes, workwear, embellished footwear, and accessories like handbags, wallets, and belts, is in focus after Goldman gave a 30 percent upside.

With a market capitalization of Rs 28,935 crore, Metro Brands Ltd’s shares on Thursday made a day high of Rs 1,075 per share, up by 5.39 percent from its previous day’s close price of Rs 1,020.70 per share.

The share has given a return of 124 percent since its listing in December 2021, in which Rekha Rakesh Jhunjhunwala holds a 9.58 percent stake as of December 2025.

Brokerage Target & Rationale

Goldman Sachs maintains a BUY rating on the stock with a revised target price of Rs1,340, reflecting an upside of 30 percent from current levels. The target revision factors in stronger sales per square foot assumptions, while the underlying valuation methodology remains unchanged.

In 3QFY26, the company reported sales and EBIT growth of 15 percent YoY, surpassing estimates by roughly 7 percent. This outperformance highlights operational efficiency and robust demand, reinforcing confidence in the company’s ability to deliver consistent quarterly results ahead of market expectations.

The 16 percent YoY acceleration was primarily driven by improved sales throughput rather than one-off factors. Management expects this growth momentum to continue, supported by strategic initiatives and stronger execution across key segments, indicating sustainable profitability in the coming quarters.

FY26–28 sales estimates have been raised by around 1 percent, while FY27 and FY28 EPS projections increased by 1 percent and 3 percent, respectively. The 3Q results came above Goldman Sachs’ consensus by 15 percent (sales) and 16 percent (EBIT), further justifying the revised target and underpinning long-term investor confidence.

About the Company

Metro Brands is a leading Indian footwear and accessories retailer, established in 1955, known for its wide range of stylish and contemporary products for the entire family, under brands like Metro, Mochi, Walkway, and partnerships with Crocs.

 It operates numerous stores across India and offers online shopping, focusing on fashion-forward designs for all occasions, from casual to festive wear, alongside bags, belts, and wallets.

Financial Highlights: The revenue from operations grew by  15 percent to Rs 811 crore in Q3FY26, corresponding to the same quarter in thelast financial year. EBDIT grew by 18 percent to Rs 265 crore in Q3 FY26 from Rs 225 crore in Q3 FY26. Accompanied by a net profit growth of 36 percent YoY to Rs 130 crore in Q3 FY26, and EPS grew by 35 percent YoY to Rs 4.71 per share in the same period.

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