In Tuesday’s intra-day trade, the shares of Metro Brands hit a new high of Rs 948.85, surging 6% on the BSE, resembling a strong business outlook. The stock has surpassed its previous high of Rs 935, which was touched on September 23 2022.

On September 21, Metro Brands said the volume of shares traded was virtuously based on the market conditions. The company is not in charge of any increase or fall in volume or changes in the stock market conditions. In the last seven trading days, the footwear company’s stock has outstripped the market by gaining 22% against a 2% fall in the S&P BSE Sensex. Further, in the last two months, the stock price of Metro Brands increased by 69% of strong earnings in the June quarter (Q1FY23).

The footwear company’s stock has zoomed 101% from its listing day low of Rs 426.10 on December 22, 2021. Currently, it is trading 90% higher than its issue price of Rs 500 per share. Metro Brands is India’s largest footwear speciality retailer. It trades footwear under its brands, Metro, Mochi, Walkway, Da Vinchi, and J. Fontini, and certain third-party brands, such as Crocs, Sketchers, Clarks, Florsheim, and Fitflop. Despite the challenging global operating environment, the company continued showing strong growth in volumes and value in its formats and tiers.

In Q1FY23, Metro Brands reported a combined net profit of Rs 105.78 crore against a net loss of Rs 12.13 crore in the quarter that ended June 2021 (Q1FY22). Total revenue from operation rose 288% year-on-year to Rs 517 crore from Rs 131 crore in the year-ago quarter. Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin stood at 36.1% in Q1FY23 compared to 11% in Q1FY22.

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The company recorded its highest-ever sales with strong sales performance across all its formats, tiers & cities, product categories, or gender & price points. The better gross margin has been due to the insignificant contribution of reduced sales and improvement in the overall sales mix in Q1FY23. Metro Brands said that overall gross margins would stabilise to around ~ 55-56 % levels in the upcoming quarters.