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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 quality company, based on a 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 not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 5.6% , indicating slower growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 9.9 9.9
Operating Profit Margin 16.28 16.28
Net Profit Margin 0.15 0.15
Q.5 Return on Asset of Shoppers Stop Ltd?
Shoppers Stop Ltd Return on Asset is 0.13(x), which is in line with its 5 year historical median of 0.13(x), indicating stable asset utilization efficiency.
Q.6 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 historical median of 2.11%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Shoppers Stop Ltd?
Shoppers Stop Ltd Return on capital employed is 53.97% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Shoppers Stop Ltd?
Shoppers Stop Ltd Cash conversion cycle is -45 , above its historical median of -55 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.94 0.94
ROE 2.11 2.11
ROCE 53.97 53.97
Cash Conversion Cycle -45 -55
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 0.29 , 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, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shoppers Stop Ltd?
Promoters hold 65.70% of the Shoppers Stop Ltd, with 9.78% 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 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 4,435.6 248.2
Gross Profit 439.2 5.5
Operating Profit 722 5.6
Net Profit 7 1.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.94 1.12
ROE 2.11 4.14
ROCE 53.97 12.58
Cash Conversion Cycle -44.65 39

Valuation & price assessment

Q.1 Stock return of Shoppers Stop Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -1.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -1.7% 9.1% -20.7% -39.9%
Q.3 Valuation ratios of Shoppers Stop Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 69.86
Price to Book 10.37 0.00 3.21
Price to Sales 0.71 0.31 1.29
EV to EBITDA 4.56 3.83 13.01

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