350% dividend! Multibagger Jhunjhunwala stock to trade ex-date today; check details & targets

Metro Brands shares dividend: Shares of Rekha Rakesh Jhunjhunwala-backed Metro Brands shall trade ex-dividend today. The multibagger footwear player had announced an interim dividend and special dividend of for their eligible shareholders, along with the quarterly results for the period ended on December 31, 2024.

The company board of Metro Brands announced, considered and declared for FY 24-25, interim dividend of Rs 3 (60 per cent)apiece and a special dividend of Rs 14.50 (290 per cent) per equity share having face value of Rs 5 each, said the company. "It is hereby informed that Friday, March 7, 2025, shall be reckoned as the 'record date' for the purpose of ascertaining the eligibility of shareholders for payment of interim and special dividend," it added.

Shares of Metro Brands Ltd settled at Rs 1139.10, falling 0.68 per cent for the day. The total market capitalization of the company stood slightly below Rs 31,000 crore. The stock is up 15 per cent from its 52-week low at Rs 992.65 hit in June 2024, while it has dropped more than 20 per cent from its 52-week high at Rs 1,430.10, hit in August 2024.

Ace investors Rekha Rakesh Jhunjhunwala owned 3,91,53,600 equity shares, or 14.40 per cent stake in Metro Brands as of December 2024 quarter. The stake in the company was valued at Rs 4,460 crore as of its previous close.

Listed December 2021, shares of Metro Brands have been a multibagger stock and delivered about 130 per cent return from its IPO price of Rs 500, when the company raised a total of Rs 1,367.51 crore via IPO route. Metro Brands is one of India’s largest specialty footwear retailers, operating in the premium and economy categories, which cater to all needs of the Indian family.

Metro Brands reported a 3.9 per cent year-on-year (YoY) dip in net profit at Rs 95 crore for the third quarter that ended December 31, 2024, including a one-time tax charge of Rs 25 crore arising from the reconciliation & reassessment of tax balances in the books. The footwear retail chain's revenue from operations increased 10.6 per cent to Rs 703 crore.

Its ebitda was up 13.1 per cent YoY to Rs 225 crore in the third quarter of this fiscal, while ebitda margin stood at 32 per cent in the reporting quarter. During the nine months ending December 31, 2024, the company opened 61 new stores, offset by 4 closures during the same period.

Metro Brands has fortified its position in the Indian footwear sector through rapid retail expansion across formats, delivering best-in-class store economics, attracting partnerships with established global brands, and efficiently managing its back-end operations, resulting in healthy financial performance across parameters, said Phillip Capital, initiating coverage with a 'buy' and a target price of Rs 1,400.

In Q3, demand recovered, driven by the festival and wedding seasons, following a subdued H1FY25. Store opening was below our estimates and guidance. It retained its guidance of 225 new store openings in FY 25-26, implying higher store openings in FY26, said Elara Capital with a target price of Rs 1,400 and a 'buy' rating on the stock.

Inventory at huge discounts, however we anticipate from the next quarter onwards the margins will be normalized. The company continued its premiumization journey with a rise in Rs 3000 category to 54 per cent YoY in 9MFY25. The net store addition will fall behind the target of 100 new stores & the company is expected to add 85-90 stores in FY25E, said SMIFS.

"We anticipate a steady growth in sales on the back of premiumization, store and brand expansion, growing S&A category led by FILA and Footlocker and deeper penetration in Tier 2/3 cities. However, the company may face challenges led by BIS implementation, mainly affect the sports & Athleisure segment but will largely remain transitory in nature," it said with an 'accumulate' rating and a target price of Rs 1,308.

On the other hand, HDFC Securities said that Metro Brands' numbers were in-line, continued to normalize due to shifting store mix. Gross margins contracted 125 bps YoY due to FILA’s inventory liquidation. "While the company has acknowledged they may fall short on their FY25 store addition guidance, it is likely to make up for it in FY26. We maintain our 'sell' rating on the stock with a target price of Rs 960," it said.