Motilal Oswal kept a Neutral rating on Shoppers Stop with a target price of Rs 410. The firm’s profitability recovered in 2QFY27 as PAT turned positive at INR31m. Strong cost control helped margins, while the premium mix reached a record 73%. The company also raised its store-opening guidance to 12.
Motilal Oswal's research report on Shoppers Stop 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. PAT turned positive at INR31m (vs. a loss of INR201m YoY). Department store LFL growth stood at 2% (6.5% festive-adjusted), with premium mix at a record 73% (+390bp YoY), holding gross margins stable. Festive LFL is tracking at mid-teens. FY27 LFL guidance is maintained at mid-single-digit or higher, while store-opening guidance is raised to 12. Outlook Until expansion gains visibility, we retain Neutral rating with a revised TP of INR410, based on 14x Dec'28E pre-Ind AS EV/EBITDA. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Shoppers Stop_19102026_Motilal Oswal