Shares of Metro Brands, backed by investor Rekha Jhunjhunwala, fell 27.11% year-to-date in 2026. The stock faced heavy selling pressure, dropping 7.03% this past week. Despite the slump, Elara Capital maintained a buy rating. Analyst Shah said, "The stock has been forming a lower-high and lower-low pattern, signalling persistent selling pressure."
Shares of Metro Brands, a footwear retailer backed by investor Rekha Jhunjhunwala, have remained under pressure in 2026, declining 27.11% year-to-date (YTD).
Metro Brands share price has also seen selling pressure across multiple time frames, falling 7.03% over the past week, 0.63% over two weeks, 6.67% over one month, and 18.13% over three months. Over the past six months, the stock has declined 13.98%.
Rekha Jhunjhunwala holds a 14.4% stake in Metro Brands, making the stock a key holding in her portfolio.
Metro Brands share price today opened at ₹846.20 apiece on the BSE, the stock touched an intraday high of ₹880.20 per share, and an intraday low of ₹844.60 apiece.
The brokerage also expects operating profitability to improve, with EBITDA margin expanding 78 basis points YoY to 27%. Adjusted profit after tax (PAT) is projected to rise 21.9% YoY.
Elara Capital has maintained a 'Buy' rating on Metro Brands, with a target price of ₹1,510, implying an upside potential of around 72% from the current market price. The target reflects the brokerage's positive view of the company's growth prospects, although actual returns will depend on business performance and market conditions.
However, Agrawal cautioned that the company's investments in brand-building and the incubation of new formats could weigh on margins in the near term. He noted that management has guided for EBITDA margins of around 30% and PAT margins of 13-15%.
On valuations, Agrawal said Metro Brands was trading at around 45 times its estimated FY28 earnings at the current market price. He also highlighted that, within the discretionary consumption segment, jewellery and hotel businesses could deliver relatively stronger earnings growth than footwear.
His assessment suggests that while Metro Brands offers a long-term earnings growth opportunity, investors should also consider its valuation and the possibility of near-term margin pressure.
Shah noted that the stock has been forming a lower-high and lower-low pattern on the daily chart, signalling persistent selling pressure. Following a distribution phase on the weekly chart, the stock appears to be entering a markdown phase.
He added that the rising Average Directional Index (ADX) on the daily chart indicates strengthening bearish momentum, while the Moving Average Convergence Divergence (MACD) line remains well below the zero line, reinforcing the negative technical outlook.
According to Shah, the ₹800-805 zone is likely to act as immediate support. A decisive breakdown below this level could extend the stock's decline. On the upside, the ₹890-900 range is expected to act as a key resistance zone.