Shares of Metro Brands Limited, a prominent mid-cap footwear stock, surged by an impressive 6% in Thursday’s trading session. This surge follows the company’s announcement of a strategic Trademark License Agreement with Foot Locker Retail, Inc., a renowned American sportswear and footwear retailer headquartered in New York.
With a market capitalisation of ₹ 38,056.95 crores, Metro Brands Limited opened Thursday’s trading session at ₹ 1,371.50 and presently trades at ₹ 1,400.25. This substantial gain of 6% signifies a positive trend compared to the previous closing levels of ₹ 1,325.65 per share. Over the past year, the company’s stock has exhibited remarkable growth, providing investors with returns of approximately 70%.
The bullish momentum in Metro Brands’ stock today can be directly attributed to the recent Trademark License Agreement disclosed through a regulatory filing with the Bombay Stock Exchange (BSE). This agreement empowers Metro Brands with exclusive rights to open and operate athletic and casual footwear/apparel stores in India under the prestigious brand names ‘FOOT LOCKER®’ and ‘KIDS FOOT LOCKER®.’
Metro Brands Limited currently boasts 795 stores across 189 cities in India, offering a diverse range of branded footwear and accessories for various occasions, from formal to casual events. The company has experienced a notable increase of 53% in e-commerce revenue, reflecting its adaptability to changing consumer preferences.
Despite witnessing a dip in prime indicators like operating revenues and net profits in recent financial quarters, Metro Brands Limited remains a robust player in the market. Operating revenues decreased from ₹ 582.52 crores in Q1FY23-24 to ₹ 555.7 crores in Q2FY23-24, while net profits decreased from ₹ 92.89 crores to ₹ 67.11 crores during the same period.
As of the quarter ending September 2023, the company’s promoters retain a dominant 74.2% stake, emphasising their commitment to Metro Brands Limited. Foreign Institutional Investors (FIIs) also express confidence in the company, holding a 2.33% stake.
