Nuvama upgrades Shoppers Stop to 'Buy'; says recent correction offers entry

The brokerage believes the recent correction in Shoppers' Stop stock price offers a margin of safety, while the "Shoppers Stop 2.0" is beginning to show tangible results

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Nuvama Institutional Equities upgraded its rating on Shoppers Stop to ‘Buy’ from ‘Hold’, with an unchanged target at ₹595 per share. The brokerage believes the recent correction in stock price offers a margin of safety, while the company's turnaround strategy under "Shoppers Stop 2.0" is beginning to show tangible results.

 

At its recent analyst day, Shoppers Stop re-emphasised its focus on three key pillars: premiumisation, elevating in-store experience, and strengthening loyalty programmes. These initiatives, according to Nuvama, have driven strong growth in Q2FY26, with momentum continuing through October and November, backed by robust festive and wedding demand. Management remains optimistic about the turnaround and is committed to executing along these strategic lines.

Vision for Shoppers Stop 2.0

Shoppers Stop, in its analysts’ day, acknowledged that its key challenge in recent years has been maintaining relevance among newer, younger consumers, despite being one of India's oldest and most established departmental store chains.

 

In response, the company has introduced a range of premium in-store experiences, including coffee shops, kids' play areas, and dedicated personal shoppers. 

 

These initiatives are designed to better align the brand with evolving customer expectations and are already showing results, according to the brokerage. The Malad store in Mumbai, redesigned under the Shoppers Stop 2.0 format, now delivers 50 per cent higher throughput per square foot compared to older formats.  CATCH STOCK MARKET LIVE UPDATES TODAY

Leadership in beauty distribution; preferred partner for global brands

Shoppers Stop operates 71 per cent of all exclusive brand outlets (EBOs) of global prestige beauty brands in India, making it the preferred partner for new international beauty brands entering the Indian market. Of the remaining EBOs, 10 per cent are operated by the brands themselves, and 19 per cent by other retailers.

 

This leadership position, combined with strong omnichannel integration, has ensured sustained momentum in the company's beauty distribution business, which is emerging as a key growth engine alongside the retail format, noted analysts.

Sharpening focus on young Indian families

Shoppers Stop is also refining its product and category strategy, with a sharper focus on the young Indian family, particularly in kids' apparel and adjacent categories, said Nuvama.

 

The company's intune format—targeted at younger, fashion-forward consumers—has expanded to 78 stores, with 39 per cent of its business coming from repeat customers, indicating strong brand resonance and customer stickiness.

 

While the core business remains centred on Shoppers Stop and beauty, intune and beauty distribution are being positioned as the primary growth engines going forward.

Management acknowledges past delays, confident of improved returns ahead

Management candidly acknowledged that several strategic shifts should have been undertaken earlier, and that the retail side has historically underperformed relative to potential.

 

However, with Indian consumers having moved up the value chain—an area where Shoppers Stop previously lagged—the company now expects meaningful improvement in returns over the next three to five years.

 

Nuvama believes with a planned scale-up, renewed focus on premiumisation, and enhanced customer experience, Shoppers Stop aims to reposition itself decisively for long-term, high-quality growth.

 

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