Shoppers Stop Ltd. share price target

ICICI Securities Ltd | Retail Equity Research SSL's standalone revenues declined 7% YoY to | 850 crore (I-direct estimate of | 943 crore). Ongoing renovations in key stores and lower number of discounting days (preponement of EOSS in Q3FY18) impacted footfalls for the current quarter. For Q4FY18,...

Owing to challenges from reduced MRP, re-positioning of private labels and mall renovations, the company couldn't meet its FY18E SSG guidance. Re-jigging the private labels, improved in-store experience and digital programmes should help drive footfalls and SSG in FY19E (SSG guidance of 7.5%) We have reduced our revenue estimates for FY19/20E by 3.5% each and increase our EBITDA margins by 10bps each on account of better cost control. Reduction in debt is likely to boost our EPS estimates by 7%/0.4% for FY19/20E. We maintain our HOLD rating...

Comparable standalone sales grew 2% with 1.4% same-store-sales growth. Gross margin was down 180 bps on decline in private label share (down 260 bps to 8.9%) and an early End of Season Sale (advanced by 7 days). OPM improved 150 bps on operational efficiencies.

ICICI Securities Ltd | Retail Equity Research SSL's standalone revenues declined 5% YoY to | 963.1 crore (I-direct estimate of | 1047.3 crore). Like-to-like sales (LTL) growth for...

Below estimates: Comparable standalone sales declined 6% while EBITDA grew 6% YoY. SSS declined 5.5% due to significant buying before GST implementation. Gross margin expanded due to fewer discount days. Operating efficiencies (+45 bps) and service tax flow through (+45 bps) increased OPM at 5.4%.

ICICI Securities Ltd | Retail Equity Research Shoppers Stop's (SSL) reported a mixed set of Q2FY18 numbers wherein consolidated results were below our estimates. However, on a standalone basis, SSL performed better at the profitability level after adjusting for one-time exceptional loss SSL's Q2FY18 consolidated revenues declined 5.2% YoY to | 1338.2 crore (I-direct estimate: | 1504.9 crore). Segment per se; departmental stores, HyperCity reported negative like-to-like (LTL)...

Shoppers Stop approved the proposal of issuing 5% equity to Amazon's investment arm, which would lower its debt burden by Rs 1.8 bn. The company has also entered into a separate agreement with Amazon India whereby the two retailers get exclusive rights to sell products at each other's retail spa..

Above estimates: Standalone sales and EBITDA grew 22% and 27% vs. consensus estimates of 9% and 21%. SSS grew 20% benefitting from an early EoSS in June before the implementation of GST.

SSL's Q1FY18 consolidated revenues grew 13% YoY to | 1323.4 crore, marginally above our estimate of | 1312.5 crore. Growth was mainly driven by strong performance in departmental stores wherein it reported revenue growth of 22% YoY to | 941 crore (I-direct estimate: | 856.1 crore). HyperCity reported revenue growth of | 282.2 crore (I-direct estimate: | 266.2 crore) Consolidated EBITDA rose 38.2% YoY to | 27.8 crore compared to our estimate of | 26.5 crore. Consolidated operating margins...

Q4 standalone sales grew 3% with SSS decline of 1.1%,as key stores were temporarily closed for renovation. Gross margin declined 90 bps due to lower contribution from private labels(down 200bps).