After weak listing on bourses, Metro Brands shares gain 12%, touches 52-week high of Rs 495
Shares of Metro Brands gained 12% in BSE intraday trade on Wednesday post making mute debut on the exchanges this morning
Shares of Metro Brands gained 12% in BSE intraday trade on Wednesday post making mute debut on the exchanges this morning. After Star Health, celebrity investor Rakesh Jhunjhunwala-backed Metro Brands' shares too declined on the listing as the shares opened with a 13 per cent discount on the BSE.
At around 12.30 pm, shares of this footwear brand were trading higher by Rs 50.60 or 11.61% on listing price to Rs 486.60 per share. It even went on to hit day's high of Rs 495, Rs 5 short of the issue price.
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The shares were trading only 2.15% short of its issue price and 12.21% higher to the listing price.
Making a weak debut on the BSE, shares of Metro Brands were listed at Rs 436 per share, a discount of 12.80% or Rs 64, on Wednesday. At the upper price band, Metro Brands has kept the issue price at Rs 500 per share.
Experts have recommended to hold the stock for long-term. "Metro Brands has demonstrated decent growth, profitability and financials in the past. However, as the company debuted discount to its issue price, long-term investors are advised to hold the stock. Short-term investors can keep their stop loss at Rs 380. If the price holds above Rs 380 on the closing basis, fresh positions can be taken and can be bought on dips," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Amarjeet Maurya, AVP, Mid-Caps, Angel One Ltd, said the share has opened at discounted rate due to its higher valuations. "We are positive on stock for the long-term on the back of asset light business, strong brands and wide range of products. We believe every dip in share prices provides buying opportunities to long term investors," Maurya added.
Metro Brands Limited (MBL) is among the top-5 footwear brands in India and is ranked fourth in the domestic footwear market (in terms of sales inFY21). Among the major footwear retailer, it has the highest net profit margin in FY21 and top performer in terms of operating margin during FY15-21. The company is among the aspirational Indian brands in the footwear category (i.e. catering to mid and premium segments) and thus have higher retail ASP than the average market, as per Choice Broking.
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