Morgan Stanley has maintained an overweight rating on Brainbees Solutions Ltd, the parent company of FirstCry, with a target price of ₹574, implying a potential upside of over 52% from the current market price of ₹376.55.
In its Q4FY25 update, Morgan Stanley noted that gross merchandise value (GMV) rose 14% YoY, while revenue and adjusted EBITDA (excluding share-based expenses) grew 16% and 20% YoY, respectively. However, adjusted EBITDA came in 12% below estimates, while revenue was 1% ahead of expectations, supported primarily by the Brainbees segment.
The brokerage noted that for the first time, the company disclosed the apparel and footwear category’s share in India’s multichannel GMV at 52%, underlining its positioning as a key retail vertical. Additionally, home brands now account for 55% of India GMV in FY25, significantly higher than the 37% recorded in FY20 — signaling strong internal brand traction and product diversification.
While the company missed topline estimates in most segments, Morgan Stanley remains optimistic about Brainbees’ strategic positioning in the online and omnichannel retail space, especially in high-margin categories.
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