Rakesh Jhunjhunwala’s footwear stocks surge by 20%

On the lock-in expiry day, shares of Rakesh Jhunjhunwala-backed footwear business rose up to 20% and traded at a 52-week high of Rs 609.50 per share.

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Shares of Rakesh Jhunjhunwala-backed Metro Brands company surged as much as 20% and traded at a 52-week high of Rs 608.20 per share. The statutory deadline for anchor investors to sell their shares in this multi-brand footwear retail chain company was lifted today.

The increase in this Big Bull-backed company’s share price is also a result of the footwear industry’s outstanding performance in the three months ending December 31, 2021.

On Monday at 11.30 am, shares of Metro Brands were up more than Rs 100 or 20%, trading at Rs 609.50 a share on the NSE. On the index, the shares have increased by almost 25% over the last five days.

For the quarter that concluded on December 31, 2022, the footwear retail chain recorded a 57% YoY increase in its consolidated earnings at Rs 101.27 crore. In the comparable quarter of the prior fiscal year, it had reported a profit of Rs 64.55 crore.

In the reported quarter, Metro Brands’ income from operations increased 59% to Rs 482.77 crore from Rs 304.21 crore reported the previous year. EBITDA increased 71% year over year to Rs 167.89 crore from Rs 98.27 crore in the previous year. The company’s margin increased from 32.3% reported in Q3FY21 to 34.70% in Q3FY22.

In the meantime, the business revealed that, for the Indian market, it has struck a strategic alliance with the FitFlop brand of well-being footwear. With this deal, Metro Brands, which has been selling FitFlop in India for the past four years, has obtained the sole right to sell the shoe in all Indian markets, including distribution, online marketplaces, airport stores, and exclusive brand stores, multi-brand stores, and websites.

Several different shoe brands are sold at Metro Brands. By March 31st 2021, the company had 598 stores distributed across 136 cities in 29 Indian states and union territories.

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