ICICI Securities Maintains 'Hold' Rating on Shoppers Stop, Targets Stock Price at Rs 330

ICICI Securities Downgrades Shoppers Stop to HOLD Due to Persistent Operational Inefficiencies

Shoppers Stop, a leading department store chain, reported a 9.3% year-over-year (YoY) revenue growth in Q4FY26, with a full-year like-for-like (LFL) sales growth of approximately 4.7%. Despite this top-line momentum, the company's management faces significant challenges in translating sales into profitability.

According to ICICI Securities' research report, the company's business has consistently struggled to convert revenue growth into profitability, indicating persistent operational inefficiencies. These issues are further compounded by the impending headwinds of crude-led inflation and supply chain disruptions in FY27. As a result, the medium-term earnings visibility for Shoppers Stop is limited.

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ICICI Securities has retained its HOLD recommendation for Shoppers Stop, but revised its price target to INR 330, down from INR 300 earlier. The research report highlights the company's efforts to drive premiumisation, scale its Intune business, and target a debt-free balance sheet by FY27. However, these initiatives are unlikely to mitigate the structural flaws in the company's operations, which are expected to impact its medium-term earnings prospects.