Rakesh Jhunjhunwala-backed footwear share hits 20% upper circuit to new 52-week high-Here is why

Shares of this Rakesh Jhunjhunwala-backed company surged as much as 20 per cent and traded on 52-week high value of Rs 608.20 per share on the lock-in expiry day. This is the day when mandatory deadline to sell shares by anchor investors lifted for this multi-brand footwear retail chain stock.  

The surge in the share price of this Big Bull-backed company also comes on the back of strong result posted by the footwear company in the quarter ended December 31, 2021.  

At 11.30 am, shares of Metro Brands were trading with gains of over Rs 100 or 20%  to Rs 609.50 per share on the NSE on Monday. The shares have surged nearly 25 per cent in the last five days on the index.  

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Footwear retail chain has reported a 57% YoY jump in the consolidated profit at Rs 101.27 crore for the quarter ended December 31, 2022. It had posted a profit of Rs 64.55 crore in the corresponding quarter last fiscal.  

Metro Brands revenue from operations grew 59% to Rs 482.77 crore in the reported quarter compared to Rs 304.21 crore posted last year. EBITDA grew 71% YoY to Rs 167.89 crore compared to Rs 98.27 crore posted last year. the company’s margin improved to 34.70% in Q3FY22 compared to 32.3% posted in Q3FY21.  

Meanwhile, the company informed that it has entered into a strategic partnership with wellbeing footwear brand FitFlop for the Indian market. Metro Brands has been selling FitFlop in India for the last four years and with this agreement, Metro Brands has secured exclusive rights for the sale of FitFlop for Indian markets across formats, including exclusive brand stores, multi-brand stores, airport stores, distribution, online marketplaces and webstore in India. 

Metro Brands is multi-brand footwear retail chain. As of March 31, 2021, the Company operated 598 Stores across 136 cities spread across 29 states and union territories in India.