Hold Shoppers Stop, target price Rs 220: Emkay Global

Hold Shoppers Stop, target price Rs 220:  Emkay Global

Emkay Global has hold call on Shoppers Stop Ltd. with a target price of Rs 220. The current market price of Shoppers Stop Ltd. is Rs 207.8.

Shoppers Stop Ltd., incorporated in the year 1997, is a Mid Cap company (having a market cap of Rs 2261.00 Crore) operating in Retail sector.

For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 715.97 Crore, up 141.08 % from last quarter Sales of Rs 296.98 Crore and down -29.74 % from last year same quarter Sales of Rs 1018.99 Crore. Company reported net profit after tax of Rs -25.11 Crore in latest quarter.

Investment Rationale
While new CEO has a good track record, slower recovery due to higher mall exposure (74/85 stores are in malls) and growth challenges in the past keep us on the sideline as of now. The brokerage retains Hold with a revised TP of Rs220 (vs. Rs210 earlier) on roll over to Dec’22E EBITDA from Sep’22E EBITDA.

Promoter/FII Holdings
Promoters held 65.5 per cent stake in the company as of Dec 30, 2020, while FIIs held 5.6 per cent, DIIs 19.8 per cent and public and others 9.2 per cent.

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