Shoppers Stop Ltd. share price target

Shoppers Stop (SHOP) reported a broadly in-line Q2FY27 performance, with standalone revenue up 4.4% YoY, department store LFL (like-for-like) growth of 2% (7% festive-adjusted), and EBITDA margin expansion of 111bps YoY to 15.1%. However, operating gains have not yet translated into sustainable GAAP profits.

Shoppers Stop’s (SHOP) profitability continued to recover in 2QFY27, with pre-IND AS EBITDA up 56% YoY to INR430m and margins up ~90bp to 3.0%, aided by stable gross margins and strong cost control.

FY26 marks the first clear evidence that Shoppers Stop (SHOP)’s strategic repositioning is translating into better operating performance, with improving store productivity, stronger customer metrics and disciplined capital allocation driving higher-quality earnings.

Shoppers Stop (SHOP) posted a strong recovery in profitability, with pre-IND AS EBITDA rising 36% YoY to INR414m and EBITDA margin improving 55bp YoY to 3.0%, reflecting better operating leverage and disciplined cost control.

Shoppers Stop (SHOP) posted standalone revenue growth of 8.3% YoY, with department store LFL (like-for-like) growth at 6%. Gross margin contracted ~82bps YoY to 40.1%, while EBITDA margin held broadly stable at 15.2%.

Shoppers Stop (SHOP) posted resilient 9.3% YoY revenue growth in Q4FY26, with full-year department store LFL at ~4.7%. Management is driving premiumisation, scaling Intune, and targeting a debt-free balance sheet by FY27.

Shoppers Stop (SHOP) delivered its strongest departmental store performance in a decade with FY26 LFL growth of 4.7%, supported by premiumization, improved footfalls, and healthy traction across non-apparel categories.

Shoppers Stop (SHOP)’s modest Q3FY26 revenue growth despite its ongoing strategic initiatives – to drive growth in both premium and value segments – casts a shadow over near-term growth momentum.

Shoppers Stop (SHOP) reported a weak 3Q, with performance impacted by weaker-than-anticipated discretionary demand amid an early festive shift, resulting in operating deleverage.

Shoppers Stop’s (SHOP) revenue growth accelerated to 10% YoY in 2QFY26 (vs. +6% YoY in 1Q), led by a 10-year high LFL of ~9.4% in departmental stores and ~70% YoY growth in INTUNE (driven primarily by store additions).

Shoppers Stop (SHOP) revenue grew 6% YoY in 1QFY25 (vs. +8%/+2% YoY in 3Q/4Q), led by 5% LFL growth in Departmental format and ~2x growth in INTUNE.

Shoppers Stop (SHOP) reported in-line results, with a slight pick-up in revenue growth (+9% YoY) on 4% LFL growth (-4% YoY in 2Q). EBITDA rose 11% YoY, driven by higher gross margins on lower write-offs and improved intake margins in private brands.

Shoppers Stop (SHOP) reported an 8% YoY decline in EBITDA (12% miss) due to weak SSSG and GM contraction. Revenue was up 4% YoY as store additions and the robust 11% YoY growth.

Shoppers Stop’s (SHOP) result was unimpressive. We understand that there is a general slowdown in the sector; however, SHOP’s accelerated underperformance in private labels.

SS is currently trading at P/E of 35.8x on FY26 basis. We value the stock based on P/E methodology and assign multiple of 30x on FY26E PAT of Rs 2,248mn to arrive at a target
price of Rs613 per share, which is a potential downside of 16.3% from current market price and recommend “Sell” on the stock.

Shoppers Stop (SHOP) reported 4% YoY growth in EBITDA (6% miss) in
4QFY24, as 9% YoY revenue growth was offset by inventory write-off and
GM contraction of 270bp YoY

Shoppers Stop’s (SHOP) 2QFY24 result was unimpressive. It was impacted by subdued demand, shift in festival to 3Q and higher EOSS. Revenues from private brands continue to underperform (-4% YoY; 14% revenue share) the branded business (+2% YoY). Positively, beauty segment is doing well (15% YoY).

Shoppers Stop’s (SHOP) 1QFY24 was unimpressive. It is holding fort well when faced with industry growth headwinds. That said, we expected SHOP’s private label (one of the key strategic pillar) to outperform the branded business (given ~30% lower ASP).