Check Before You Invest : Shoppers Stop Ltd

BSE: 532638 NSE: SHOPERSTOP ISIN: INE498B01024

| Sector: Retail | Industry: Retailing

Snapshot

Q.1 Which industry/sub-sector does Shoppers Stop Ltd belong to?

Shoppers Stop Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is Shoppers Stop Ltd a good quality company?

Shoppers Stop Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Shoppers Stop Ltd undervalued or overvalued?

Shoppers Stop Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Shoppers Stop Ltd a good buy now?

Shoppers Stop Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Shoppers Stop Ltd?

Shoppers Stop Ltd revenue growth is 5.3% for FY-2025, which is below its 5-year CAGR of 5.58%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Shoppers Stop Ltd?

Shoppers Stop Ltd Return on capital employed is 53.97% for FY-2025, which is in line with its 5-year historical median of 53.97%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Shoppers Stop Ltd?

Shoppers Stop Ltd Return on Asset is 0.13%, which is in line with its 5-year historical median of 0.13%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Shoppers Stop Ltd?

Shoppers Stop Ltd Return on equity is 2.11% for FY-2025, which is in line with its 5-year historical median of 2.11%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Shoppers Stop Ltd?

Shoppers Stop Ltd Cash conversion cycle is -45 days, above its 5-year historical median of -55 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	0.94	0.94
ROE	2.11	2.11
ROCE	53.97	53.97
Cash Conversion Cycle	-45 days	-55 days

Q.6 Gross Profit margin of Shoppers Stop Ltd?

Shoppers Stop Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.9% for FY-2025, which is in line with its 5-year median of 9.9%, indicating stable margins.

Q.7 Operating Profit Margin of Shoppers Stop Ltd?

Shoppers Stop Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.28% for FY-2025, which is in line with its 5-year median of 16.28% indicating stable margins.

Q.8 Net Profit Margin of Shoppers Stop Ltd?

Shoppers Stop Ltd Net Profit Margin is 0.15% for FY-2025, is in line with with its 5-year median of 0.15%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	9.9	9.9
Operating Profit Margin	16.28	16.28
Net Profit Margin	0.15	0.15

Q.9 Debt to Equity ratio of Shoppers Stop Ltd?

Shoppers Stop Ltd Debt-to-Equity ratio is 0.80, which is above with the industry average of 0.41, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Shoppers Stop Ltd?

Shoppers Stop Ltd Debt to cash flow from operations is 0.46, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shoppers Stop Ltd?

Promoters hold 66.06% of the Shoppers Stop Ltd, with 9.73% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shoppers Stop Ltd vs industry peers?

Shoppers Stop Ltd revenue CAGR is 5.58%, compared to the industry median CAGR of 14.61%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	5.3	14.6
Gross Profit Growth	-9.4	NAN
Operating Profit Growth	-1.2	NAN
Net Profit Growth	-90.5	14.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.94	1.14
ROE	2.11	7.96
ROCE	53.97	12.62
Cash Conversion Cycle (days)	-44.65	48

Valuation & price assessment

Q.1 Stock return of Shoppers Stop Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -0.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-0.7%	12.4%	-20.3%	-29.9%

Q.3 Valuation ratios of Shoppers Stop Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	121.96	37.16
Price to Book	12.47	29.70	2.93
Price to Sales	0.79	1.82	1.30
EV to EBITDA	5.03	10.34	14.03

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