Metro Brands Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Metro Brands Ltd trades at ₹940, in a downtrend and 41 weeks into that stage. That is −9.0% against its own 200-day average. It sits at 10% of a 52-week range of ₹911 to ₹1,220. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (14 weeks and counting).

Today the stock is in a downtrend — week 41 of stage 4, confirmed. At ₹940 it trades −9.0% versus its 200-day average and sits at 10% of its 52-week range (₹911–₹1,220).

Against the market, two honest reads. Cumulative: over the last 4.7 years the stock moved +100% while the NIFTY 500 moved +54% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (14 weeks and counting; last ahead the week of 2026-06-19) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Metro Brands Ltd trades at 63.1× P/E, near the bottom of its own range — cheaper only 8% of the time. Its long-run median P/E is 81.8×, measured across 4.7 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 63.1× is near the bottom of its own range — cheaper only 8% of the time, against a long-run median of 81.8× measured over 4.7 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +17.2% against a −27.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 3y, of the −4.9%/yr price move, ~+5.1%/yr came from earnings growth and ~−10.0 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Metro Brands Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 4 quarters ago at −14.6% and has held its recovery at +14.1%, ROCE holding at 21.5%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

4-Factor Sector Score

50.6/100 — rank 4 of 7 in Footwear · 94% evidence confidence

Metro Brands Ltd scores 50.6 out of 100 against the 7 companies it is compared with in Footwear, ranking 4. Strong business, demanding price: keep it on the quality list, but require either earnings upgrades or valuation compression.

The four contributions add to the total exactly: 14.6 + 18.6 + 4.9 + 12.5 = 50.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Metro Brands Ltd reported ₹720 Cr of revenue in the Jun 26 quarter, +14.6% year on year. That is the 8th straight quarter of year-on-year growth. Over 10 years it has compounded at 13.6% a year. The last full year, FY26, came in at ₹2,864 Cr. The last four reported quarters add to ₹2,955 Cr.

FY26 revenue came in at ₹2,864 Cr (+14.2% on the year), capping 10 years at 13.6% compound. The latest quarter (Jun 26) printed ₹720 Cr, +14.6% year on year — the 8th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +15.4% growth against the decade's 13.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +15.5% over the last 4 quarters against +12.1%/yr over the last 8 — accelerating; TTM profit +14.1% vs −0.4%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Metro Brands Ltd's operating margin is 30.0% in the Jun 26 quarter, −1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 17.0% to 32.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 30.0%, −1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 17.0%–32.0%.

🚨 Why the margin moved: operating margin went −1.1 pp year on year while gross margin went +0.1 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Metro Brands Ltd earned ₹95.0 Cr of net profit in the Jun 26 quarter, −4.0% year on year. Full-year FY26 profit was ₹416 Cr. The 10-year compound rate is 16.9%. That is 13.2% of the quarter's revenue. The same quarter a year earlier earned ₹99.0 Cr.

Jun 26 profit was ₹95.0 Cr, −4.0% year on year. On the full year, FY26 printed ₹416 Cr (+17.5%), and the 10-year compound rate is 16.9%.

🚨 Why profit moved: revenue contributed +14.6% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +13.2% vs revenue +15.4%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 149% of Metro Brands Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹474 Cr of operating cash against ₹416 Cr of profit. After ₹702 Cr of capital spending, ₹−228 Cr was left as free cash.

FY26: operating cash of ₹474 Cr against reported profit of ₹416 Cr, leaving free cash of ₹−228 Cr after ₹702 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 149% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 149%: the cash cycle stretched 88 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 1.9× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Metro Brands Ltd's cash conversion cycle runs 197 days in FY26, up from 109 days in FY21. Capital spending ran ₹1,480 Cr over the last 3 years. At FY26 sales of ₹2,864 Cr each day of that cycle holds about ₹7.8 Cr, so roughly ₹1,546 Cr sits inside the business at any moment.

FY26: debtors at 13 days, inventory at 273 days — roughly 9.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 197 days, looser than FY21's 109.

The full loop: cash goes out to suppliers and production on day 0; stock waits 273 days to sell; customers pay about 13 days after that; and suppliers themselves are paid at 89 days — netting out to the 197-day cycle.

In money terms: at FY26 sales of ₹2,864 Cr, each day of the cycle holds about ₹7.8 Cr — so the 197-day loop keeps roughly ₹1,546 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,480 Cr over the last 3 fiscal years against ₹798 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹18.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Metro Brands Ltd earns a ROCE of 20% in FY26. That is up from a trough of 9% in FY21. Return on invested capital clears the cost of that capital by +2.8 percentage points, so growth here adds value rather than only size. The wiring behind it is 14.5% net margin on 0.71× asset turns.

FY26 ROCE is 20%, recovered from a FY21 trough of 9% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 14.5% net margin × 0.71× asset turns × 2.01× balance-sheet leverage ≈ 20.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 14.8% − 12.0% = a +2.8 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Metro Brands Ltd carries total debt of ₹1,570 Cr against shareholder equity of ₹2,027 Cr as of Mar 26, a debt-to-equity of 0.77. On the annual view that ratio went from 0.54 in FY22 to 0.77 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹1,570 Cr against shareholder equity of ₹2,027 Cr — a debt-to-equity of 0.77. On the annual view, debt-to-equity went from 0.54 (FY22) to 0.77 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 2.4 points of Metro Brands Ltd over 8 quarters, the biggest move on the register. That takes promoters to 71.8% of the company. Domestic institutions moved +2.1 points over the same window, to 7.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −2.4 points over 8 quarters to 71.8%; Domestic institutions: +2.1 points over 8 quarters to 7.7%; Foreign institutions: +0.7 points over 8 quarters to 3.7%.

🚨 Why the register moved: promoters drove it (−2.4 points), absorbed on the other side by domestic institutions (+2.1 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Metro Brands Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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