Check Before You Invest : Metro Brands Ltd

Q: Which industry/sub-sector does Metro Brands Ltd belong to?

Metro Brands Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q: Is Metro Brands Ltd a good quality company?

Metro Brands Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Metro Brands Ltd undervalued or overvalued?

Metro Brands Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 73.36, Historic Median: 78.09. Price to Book, Current: 14.75, Historic Median: 16.61. Price to Sales, Current: 10.53, Historic Median: 13.41. EV to EBITDA, Current: 30.76, Historic Median: 38.16

Q: Is Metro Brands Ltd a good buy now?

Metro Brands Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Metro Brands Ltd?

Metro Brands Ltd revenue growth is 6.3% for FY-2025, which is below its 5-year CAGR of 15.16%, indicating slower growth.

Q: Gross Profit margin of Metro Brands Ltd?

Metro Brands Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.2% for FY-2025, which is in line with its 5-year median of 26.2%, indicating stable margins.

Q: Operating Profit Margin of Metro Brands Ltd?

Metro Brands Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 30.62% for FY-2025, which is in line with its 5-year median of 30.67% indicating stable margins.

Q: Net Profit Margin of Metro Brands Ltd?

Metro Brands Ltd Net Profit Margin is 14.27% for FY-2025, is below its 5-year median of 15.82%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 26.2, Historic Median: 26.2. Operating Profit Margin (%), Current: 30.62, Historic Median: 30.67. Net Profit Margin (%), Current: 14.27, Historic Median: 15.82

Q: Return on Asset of Metro Brands Ltd?

Metro Brands Ltd Return on Asset is 10.78%, which is in line with its 5-year historical median of 10.85%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Metro Brands Ltd?

Metro Brands Ltd Return on capital employed is 33.39% for FY-2025, which is in line with its 5-year historical median of 32.53%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Metro Brands Ltd

BSE: 543426 NSE: METROBRAND ISIN: INE317I01021

| Sector: Retail | Industry: Retailing

Snapshot

Q.1 Which industry/sub-sector does Metro Brands Ltd belong to?

Metro Brands Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is Metro Brands Ltd a good quality company?

Metro Brands Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Metro Brands Ltd undervalued or overvalued?

Metro Brands Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	73.36	78.09
Price to Book	14.75	16.61
Price to Sales	10.53	13.41
EV to EBITDA	30.76	38.16

Q.4 Is Metro Brands Ltd a good buy now?

Metro Brands Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Metro Brands Ltd?

Metro Brands Ltd revenue growth is 6.3% for FY-2025, which is below its 5-year CAGR of 15.16%, indicating slower growth.

Q.2 Gross Profit margin of Metro Brands Ltd?

Metro Brands Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.2% for FY-2025, which is in line with its 5-year median of 26.2%, indicating stable margins.

Q.3 Operating Profit Margin of Metro Brands Ltd?

Metro Brands Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 30.62% for FY-2025, which is in line with its 5-year median of 30.67% indicating stable margins.

Q.4 Net Profit Margin of Metro Brands Ltd?

Metro Brands Ltd Net Profit Margin is 14.27% for FY-2025, is below its 5-year median of 15.82%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	26.2	26.2
Operating Profit Margin (%)	30.62	30.67
Net Profit Margin (%)	14.27	15.82

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Metro Brands Ltd?

Metro Brands Ltd Return on Asset is 10.78%, which is in line with its 5-year historical median of 10.85%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Metro Brands Ltd?

Metro Brands Ltd Return on capital employed is 33.39% for FY-2025, which is in line with its 5-year historical median of 32.53%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Metro Brands Ltd?

Metro Brands Ltd Return on equity is 20.16% for FY-2025, which is in line with its 5-year historical median of 20.36%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Metro Brands Ltd?

Metro Brands Ltd Cash conversion cycle is 41 days, above its 5-year historical median of 29 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.89	0.89
ROE (%)	20.16	20.36
ROCE (%)	33.39	32.53
Cash Conversion Cycle	41 days	29 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Metro Brands Ltd?

Metro Brands Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Metro Brands Ltd?

Metro Brands Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Metro Brands Ltd?

Q.1 Promoter shareholding and pledge status of Metro Brands Ltd?

Promoters hold 71.80% of the Metro Brands Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Metro Brands Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Metro Brands Ltd vs industry peers?

Metro Brands Ltd revenue CAGR is 15.16%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	6.3	0
Gross Profit Growth (%)	8.7	19.8
Operating Profit Growth (%)	6.4	16.2
Net Profit Growth (%)	-16.3	18.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.89	1.11
ROE (%)	20.16	3.58
ROCE (%)	33.39	11.9
Cash Conversion Cycle (days)	40.89	38

Valuation & price assessment

Q.1 Stock return of Metro Brands Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 4.47% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	4.5%	-2.6%

Q.2 Valuation ratios of Metro Brands Ltd vs historical?

The current P/E ratio of 73.36 is lower than its historical median of 78.09, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	73.36	78.09	37.15
Price to Book	14.75	16.61	2.76
Price to Sales	10.53	13.41	1.31
EV to EBITDA	30.76	38.16	14.00

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Check Before You Invest : Metro Brands Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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