Goldman Sachs initiates coverage on these Indian footwear brands, upbeat on growth prospects

Goldman Sachs on Indian footwear companies: Goldman Sachs has initiated coverage on Indian footwear companies Metro Brands and Bata India. The brokerage feels that branded footwear in India is under-penetrated and has a long growth runway.

The analysts at the brokerage believe that multi-brand footwear retailers are best positioned currently. Goldman Sachs added that sports and athleisure are a multi-decade double-digit growth opportunity.

Metro Brands share price target

Goldman Sachs has initiated coverage on Metro Brands with a buy call. The brokerage expects the company will successfully leverage the sports and athleisure opportunities with FILA. It has placed the target price at Rs 1,450, implying an upside potential of 28.3 per cent from the previous close.

It must be noted here that Metro Brands acquired Cravatex Brands in 2022. BSE-listed Cravatex Brands has the exclusive long-term licence for the Italian sportswear brand FILA.

Metro Brands shares rose as much as 6.17 per cent on Friday, March 22, to the day's high of Rs 1,199.9 on the NSE in morning deals. Metro Brands shares have rallied nearly 50 per cent in the last one year. The counter has gained nearly six per cent last six months.

Metro Brands Q3 results: How did it perform in Q3?

The Mumbai-based footwear retail company reported a decline of 12.6 per cent in its consolidated net profit at Rs 99 crore for the third quarter that ended on December 31, 2023.

Metro Brands' earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 200 crore in Q3, down 2.8 per cent YoY. However, the revenue increased by 6.1 per cent to Rs 636 crore against Rs 599 crore.

Bata India share price target

Goldman Sachs has initiated coverage on Bata with a neutral rating and a target price of Rs 1,470. The target price implies an upside potential of 6.5 per cent from current levels.

Bata India shares rose as much as 1.31 per cent on Friday, March 22, to the day's high of Rs 1,397.75 on the NSE in morning deals. Bata India shares have slipped nearly two per cent in the last one year. The counter has slipped by over 15 per cent over the past six months.

Bata India Q3 results: How did it perform in Q3?

Bata India's profit after tax (PAT) slid by 30 per cent to Rs 58 crore year-on-year (YoY) for the December quarter. Bata's revenue from operations was flat at Rs 903 crore in the quarter under review from Rs 900 crore in the same quarter last fiscal. EBITDA also saw a decline of 12 per cent to Rs 182 crore compared to Rs 206 crore.

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