Footwear maker Metro Brands finds new spring in its step after GST cut

Tax tweaks and fresh launches give footwear major a leg up on rivals

The stock of the largest listed footwear player, Metro Brands, has outperformed peers, gaining nearly 17 per cent over the past month to close at ₹1,319.75 on Wednesday on the BSE. In comparison, the average return for large listed peers in the sector during this period stood at around 7 per cent. The gains for Metro Brands came on the back of changes in goods and services tax (GST), new launches, and expectations of margin improvement going forward.

 

A key trigger for the stock is the revision in GST rates. While the GST rate for products priced above ₹2,500 remains