Shares of Shoppers Stop, one of India’s leading departmental stores, gained strongly in Thursday's trade after the company reported impressive fourth-quarter (Q4FY23) numbers. The results showed a marked improvement in the company's performance compared to last year's period.
The company on Wednesday reported a consolidated net profit of ₹14.26 crore for the fourth quarter ended March 31, 2023. The company had registered a net loss of ₹16 crore during the same quarter of the last fiscal year.
The revenue from operations during the quarter came in at ₹924 core, a growth of nearly 30% YoY. It reported an operating profit of ₹155 crore for the March quarter, an increase of 104% when compared to ₹76 crore in the corresponding quarter of the last fiscal. EBITDA margin stood at 17% in Q4, up by 600 basis points (bps) from the same quarter last year.
During the third quarter of FY23, the company achieved its highest-ever quarterly revenue of ₹1,137 crore and its highest-ever quarterly net profit of ₹63 crore.
For the entire 2022–23 period, Shoppers Stop posted a consolidated net profit of ₹116 crore, compared to a net loss of ₹47 crore in 2021–22. Total revenue in the last fiscal stood at ₹4,022 crore as against ₹2,519 crore in 2021–22.
In response to a strong Q4 show, the company's shares opened higher at ₹639 apiece, compared to the previous closing price of ₹617.25, and grew further to hit an intraday high of ₹655, up by 6.11%.
At 11:30 a.m., the stock was trading at ₹643 per share, up by 4.24% on the BSE.
Shoppers Stop is a small-cap stock with a market capitalisation of over ₹7,054 crore. The company is engaged in the business of retailing a variety of household and consumer products through departmental stores.
In CY22, the stock recorded 112% gains, appreciating from ₹334.90 apiece to ₹709.35. The rally in the stock was supported by the consistent improvement in operating performance with a revival in the retail sector, repeat sales from first citizen loyalty customers, an increasing contribution from private labels, higher sales from the beauty segment, and traction in the omnichannel, according to analysts.
11 analysts polled by MintGenie on average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
