Target: ₹595
CMP: ₹401.20
At its analyst day, Shoppers Stop (SS) re-emphasised its focus on pillars for Shopper Stop 2.0, viz. premiumisation, elevating in-store experience and strengthening its loyalty programmes.
All of these have led to better growth in Q2FY26, evident from the company reporting strong growth in a long time, and the momentum continuing in October and November backed by strong festive and wedding demand.
Management acknowledged that several shifts should have been undertaken earlier, and that the retail side has underperformed historically. However, with customers having moved up the value chain—where Shoppers Stop previously lagged—the company expects meaningful improvement in returns over the next three to five years.
With a planned scale-up and a renewed focus on premiumisation and customer experience, Shoppers Stop aims to reposition itself decisively for long term, high-quality growth.
The recent correction in stock price offers a margin of safety and prompts us to upgrade the stock to ‘Buy’ (from ‘Hold’) with unchanged estimates and TP at ₹595.
Key risks: Store Rollout delays – due to developers and capital crunch; increased competition and escalation in lease rentals.
Published on December 8, 2025
