Shares of Shopper’s Stop Ltd. climbed 11.5% to a 52-week high Rs 603.7 apiece. Trading volume is 63 times the 30-day average. The relative strength index on the stock is 73, suggesting it may be overbought.
The sharp uptick comes after the company posted net profit of Rs 22.83 crore in the quarter-ended June, post market hours on Tuesday. Shopper’s Stop had reported net loss of Rs 118 crore (YoY) in Q1FY2021-22 and Rs 15.85 crore (QoQ) in Q4FY2021-22. EBITDA almost doubled to Rs 162.50 crore while revenue rose 33%.
Q1 FY23 (Consolidated, QoQ)
- Revenue up 33% at Rs 948.44 crore
- EBITDA up 2x at Rs 162.50 crore
- EBITDA margin at 17% vs 11%
- Net profit at Rs 22.83 crore vs net loss of Rs 15.85 crore
The company said that the customer footfall is back to pre-Covid levels and expected further demand recovery as the economic activity normalises. Shopper’s Stop is expanding its retail segment and shifting focus on omni channel retail experience to cater to the users. Both customer visits (34.2 million) and average transaction value (Rs 4,344) were way ahead of corresponding quarters in the last three years.
Of the 11 analysts tracking the company, six maintain ‘buy’, four suggest ‘hold’ and one recommends ‘sell’. The return potential of the stock is -16.1%.
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