Shoppers Stop

India Equity Research | Retail

May 24, 2021
Result Update Emkay
Your success is our success
©

Refer to important disclosures at the end of this report

CMP Target Price

Recovery marginally better; growth Rs 221

as of (May 24, 2021)
Rs 230 (▲)
12 months

concerns remain Rating Upside

HOLD (■) 4.1 %

 Operating performance beat our/Street estimates, largely driven by better sales recovery Change in Estimates
(95% vs. 90% est.) and revenue mix in Q4. EBITDA was 30% above estimate, with EPS Chg FY22E/FY23E (%) NA/77
margins rising 340bps to 14.2% on higher share of private labels in mix and cost savings. Target Price change (%) 4.5
 SHOP has stepped up expansion and plans to open 10 new department stores and 10 Target Period (Months) 12
beauty stores in FY22, with a capex of ~Rs0.8bn. The expansion will be funded via internal Previous Reco HOLD
accruals (Rs0.2bn net cash). Any delay in recovery could lead to store opening delay too. Emkay vs Consensus
 Improvement in strategic pillars - including digital, private labels, beauty and personal EPS Estimates
shopper - is positive and has driven growth. However, with the second wave of Covid, we FY22E FY23E
expect recovery to get delayed and await a meaningful improvement in growth outlook.
Emkay (7.8) 6.9
 We cut FY22E revenue/EBITDA numbers by 22%/56% on expected store closures in Q1. Consensus 0.1 5.1
We largely retain FY23E EBITDA estimates and introduce FY24E. Maintain Hold and raise
Mean Consensus TP (12M) Rs 231
TP slightly from Rs220 to Rs230 (10x Jun’23E pre-IndAS116 EBITDA vs. Mar’23E earlier).
Stock Details
Decent performance but second Covid wave to impact recovery: Q4 saw ~95% recovery Bloomberg Code SHOP IN
in sales but on a low base. On a 2-year basis, recovery is slow, with sales decline at ~10% Face Value (Rs) 5
CAGR. Footfalls were down 17% but higher bill sizes (+6% YoY) and growth in digital sales Shares outstanding (mn) 109
(+188% YoY) restricted the decline in sales at ~5%. SHOP expects weak Q1 due to 52 Week H/L 270 / 124
lockdowns and higher mall salience (73 of 84 stores in malls). SHOP closed 6 department
M Cap (Rs bn/USD bn) 24 / 0.33
stores and opened 1 in FY21 (84 stores vs. 89 at FY20-end). It expects to open 10 department
Daily Avg Volume (nos.) 3,58,320
stores and 10 beauty stores in FY22, with a capex of ~Rs0.8bn (funded via internal accruals).
SHOP had cash and investments of Rs1.7bn and debt of Rs1.5bn at FY21-end (Exhibit 6). Daily Avg Turnover (US$ mn) 1.1

Improvement across key strategic pillars: SHOP saw improved metrics across its key Shareholding Pattern Mar '21
strategic pillars, with private label mix at 13% (+250bps), personal shoppers mix at 15% Promoters 65.5%
(+80bps), beauty mix at 17.1% (+10bps) and digital mix at 6.2% (~2% earlier). Attractive price
FIIs 5.8%
points, new launches and the implementation of S4-HANA were key drivers of improvement.
DIIs 19.9%
Cost savings on track: EBITDA margins improved 340bps YoY, helped by better revenue
Public and Others 8.9%
mix and operating leverage. The share of higher-margin private labels improved 250bps in
Q4. Cost savings were on track, with Rs0.4bn/Rs4.3bn of savings in Q4/FY21. While SHOP Price Performance
expects cost savings to continue, it did not quantify the savings due to volatile situation. SHOP (%) 1M 3M 6M 12M
has taken an impairment of Rs420mn in FY21 (Rs120mn in Q4) against an investment of
Absolute 15 7 22 75
Rs687mn in Crossword Bookstores. It expects better margins in this business from hereon.
Rel. to Nifty 9 5 5 4
Await meaningful improvement in growth outlook; Hold: SHOP has displayed impressive
Relative price chart
cost savings and an improvement in performance, driven by its key strategic pillars. However,
275 Rs % 50
the growth outlook is yet to improve meaningfully. We cut FY22E EBITDA by 56%, factoring
in the disruption in Q1 but retain FY23E EBITDA. Maintain Hold with a revised TP of Rs230 240 38

vs Rs220 earlier rolling forward to 10x Jun’23E pre-IndAS116 EBITDA. 205 26

Please see our sector model portfolio (Emkay Alpha Portfolio): Consumer Goods & Retail (page 7) 170 14

135 2
Financial Snapshot (Standalone)
100 -10
(Rs mn) FY20 FY21 FY22E FY23E FY24E May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21

Revenue 33,810 17,251 24,000 34,637 38,971 Shoppers Stop (LHS) Rel to Nifty (RHS)

EBITDA 5,494 534 2,424 6,519 7,604 Source: Bloomberg

This report is solely produced by Emkay Global. The
EBITDA Margin (%) 16.3 3.1 10.1 18.8 19.5 following person(s) are responsible for the production
of the recommendation:
APAT (1,209) (2,528) (858) 757 1,281
EPS (Rs) (13.7) (23.1) (7.8) 6.9 11.7 Ashit Desai
EPS (% chg) (253.6) 0.0 0.0 0.0 69.2 ashit.desai@emkayglobal.com
+91 22 6612 1340
ROE (%) (21.7) (158.9) (61.8) 59.0 58.6
P/E (x) (16.1) (9.6) (28.2) 31.9 18.9 Devanshu Bansal
devanshu.bansal@emkayglobal.com
EV/EBITDA (x) 7.2 79.7 17.8 6.8 5.8
+91 22 6612 1385
P/BV (x) 14.2 13.3 25.2 15.0 8.7
Source: Company, Emkay Research

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
 Shoppers Stop (SHOP IN) India Equity Research | Result Update

Story in Charts

Exhibit 1: Decent recovery but higher mall exposure continued to Exhibit 2: EBITDA margins 340bps YoY due to better revenue mix
impact revenues in Q4FY21 with higher share of private labels

20 3,000 50
14 2,500
12 0 2,000 13.4 0
-5 16.6 16.2 19.9 10.8 14.2
10 1 -2 -1 -10 -20 1,500 -11.9 -50
-7 1,000
8 -40 -100
6 -29 500 1,382 1,372 1,975 766 949 956
-65 -60 0 -150
4 -500
-80 -1,024 -347 -200
2 7.9 8.3 8.5 9.9 7.1 0.5 2.9 7.1 6.7 -1,000 -189.9
0 -100 -1,500 -250
-94

Q1FY20

Q2FY20

Q3FY20

Q4FY20

Q1FY21

Q2FY21

Q3FY21

Q4FY21
Q4FY19

Q1FY20

Q2FY20

Q3FY20

Q4FY20

Q1FY21

Q2FY21

Q3FY21

Q3FY21
Revenues (Rsbn) YoY growth, % EBITDA(mn)-LHS EBITDA margin (%)-RHS

Source: Company, Emkay Research Source: Company, Emkay Research

Exhibit 3: Private label mix improved YoY Exhibit 4: New store additions remained muted in Q4FY21
15.5 89 89
16 15.0 4.70
88 85 84
13.4 13.0 83 83 84 84 84 4.60
85
14 4.50
12.2 12 12.0 82
11.2 79 4.50 4.50 4.50 4.50 4.50 4.50 4.40
12
10.2 10.3 10.4 76 4.30
9.2 4.20
10 8.5 73 4.28
4.25 4.24
70 4.10
8

Q4FY20
Q4FY19

Q1FY20

Q2FY20

Q3FY20

Q1FY21

Q2FY21

Q3FY21

Q4FY21
Q4 FY18

Q1 FY19

Q1FY20
Q2FY19

Q3FY19

Q4FY19

Q2FY20

Q3FY20

Q4FY20

Q1FY21

Q2FY21

Q3FY21

Q4FY21

Department stores - LHS Area (sq ft mn) - RHS

Private label mix (%)
Source: Company, Emkay Research Source: Company, Emkay Research

Exhibit 5: Footfalls recovered to 83% in Q4FY21 from 3% in Q1FY21

100
90 83
80
70
60 50
50
40
30 19
20
10 3
0
Q1FY21 Q2FY21 Q3FY21 Q4FY21

Footfall YoY Recovery (%)

Source: Company, Emkay Research

Exhibit 6: Cash-flow movement over the last two years; *SHOP also has Rs1.3bn liquid investments apart from Rs416mn cash at FY21-end*

3,000 420 -2,110

1,940
2,000
1,000 167 2,940 416
710 13
0
-1,000 -1,100
-2,000
-1,860
-3,000 -590
-790 710
-4,000
FY19 CFO WC Capex CFI CFF FY20 CFO WC Capex CFI CFF FY21
Cash Cash Cash

Source: Company, Emkay Research,*CFO is operating cash flow before WC; CFI is Investing cash flow and CFF is Financing cash flow (Debt/Equity)

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.

May 24, 2021 | 2

 Shoppers Stop (SHOP IN) India Equity Research | Result Update

Exhibit 7: Actual vs. Estimates (Q4FY21)

Estimates % variation
Rs mn Actual Comment
Emkay Consensus Emkay Consensus
Sales 6,712 6,337 6,229 5.9% 7.7% Revenues were slightly better than our/Street estimates
EBITDA 956 723 514 32.2% 85.9%
EBITDA margin (%) 14.2% 11.4% 8.3% 280 590 Better revenue mix led to better EBITDA margins
Adjusted PAT -247 -399 -448 -38.2% -44.9% PAT loss was lower than expectations
Source: Company, Emkay Research

Exhibit 8: Quarterly Performance (Standalone)

Y/E, Mar (Rs mn) Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 YoY (%) QoQ (%) FY20 FY21 YoY (%)
Revenue 7,092 539 2,924 7,076 6,712 -5.4 -5.2 33,810 17,251 -49.0
Expenditure 6,326 1,563 3,271 6,127 5,756 -9.0 -6.1 28,315 16,717 -41.0
Consumption of RM 4,256 366 1,974 4,347 3,964 -6.9 -8.8 19,676 10,651 -45.9
as % of sales 60.0% 67.9% 67.5% 61.4% 59.1% 58.2% 61.7%
Employee Cost 718 748 545 660 622 -13.3 -5.7 3,219 2,575 -20.0
as % of sales 10.1% 138.7% 18.6% 9.3% 9.3% 9.5% 14.9%
Other expenditure 1,352 449 752 1,120 1,170 -13.5 4.5 5,420 3,491 -35.6
as % of sales 19.1% 83.3% 25.7% 15.8% 17.4% 16.0% 20.2%
EBITDA 766 -1,024 -347 949 956 24.8 0.7 5,495 534 -90.3
Depreciation 1,696 997 941 1,003 906 -46.6 -9.7 4,392 3,847 -12.4
EBIT -930 -2,021 -1,288 -54 50 1,103 -3,313
Other Income 64 1,040 631 310 207 225.5 -33.3 335 2,188 553.4
Interest 508 552 607 535 505 -0.6 -5.7 1,944 2,200 13.2
PBT -1,375 -1,533 -1,264 -279 -248 -506 -3,325
Total Tax -247 -382 -342 -72 -1 703 -797
Adjusted PAT -1,128 -1,151 -922 -207 -247 -1,209 -2,528
(Profit)/loss from JV's/Ass/MI 0.0 0.0 0.0 0.0 0.0 0 0
APAT after MI -1,128 -1,151 -922 -207 -247 -1,209 -2,528
Extra ordinary items 200 0 100 0 124 200 224
Reported PAT -1,328 -1,151 -1,022 -207 -371 -1,409 -2,752
Reported EPS -15.1 -13.1 -11.6 -1.9 -2.3 -16.0 -28.9

Margins (%) Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 (bps) (bps) FY20 FY21 (bps)
EBIDTA 10.8 -189.9 -11.9 13.4 14.2 340 80 16.3 3.1 -1,320
EBIT -13.1 -374.9 -44.0 -0.8 0.7 3.3 -19.2
EBT -19.4 -284.3 -43.2 -3.9 -3.7 -1.5 -19.3
PAT -15.9 -213.5 -31.5 -2.9 -3.7 -3.6 -14.7
Effective Tax rate 18.0 24.9 27.0 25.9 0.6 -138.8 24.0
Source: Company, Emkay Research

Exhibit 9: Changes in estimates

FY22E FY23E FY24E
Rs mn
Earlier Revised % Change Earlier Revised % Change Introduced
Revenues 30,693 24,000 -21.8 34,637 34,637 0.0 38,971
EBITDA 5,442 2,424 -55.5 6,527 6,519 -0.1 7,604
EBITDA Margin (%) 17.7 10.1 -760 bps 18.8 18.8 0 bps 19.5
PAT 17 (858) NA 427 757 77.3 1,281
EPS (Rs) 0.2 -7.8 NA 3.9 6.9 77.3 11.7
Source: Company, Emkay Research

Exhibit 10: Peer comparison

Price Mcap EPS (Rs) P/E (x) EV / EBITDA (x)
Companies Reco TP (Rs)
(Rs) (Rs bn) FY21E FY22E FY23E FY21E FY22E FY23E FY21E FY22E FY23E
ABFRL 189 174 Buy 206 -5.7 2.6 3.7 -33.0 73.5 50.9 67.1 12.1 10.1
Jubilant FoodWorks 3,020 399 Buy 2,750 18.0 44.6 54.5 167.6 67.7 55.4 51.2 31.0 26.0
Page Industries 29,380 328 Hold 28,000 316.0 482.7 549.2 93.0 60.9 53.5 59.1 40.1 35.1
Shoppers Stop 210 23 Hold 230 -23.1 -7.8 6.9 -9.1 -26.7 30.3 77.3 17.3 6.6
Titan Company 1,538 1,366 Buy 1,725 11.0 25.6 32.8 140.2 60.0 46.9 77.3 38.5 30.4
Source: Company, Emkay Research

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.

May 24, 2021 | 3

 Shoppers Stop (SHOP IN) India Equity Research | Result Update

Key Financials (Standalone)

Income Statement
Y/E Mar (Rs mn) FY20 FY21 FY22E FY23E FY24E
Revenue 33,810 17,251 24,000 34,637 38,971
Expenditure 28,315 16,717 21,576 28,117 31,367
EBITDA 5,494 534 2,424 6,519 7,604
Depreciation 4,392 3,847 3,473 3,696 3,968
EBIT 1,102 (3,313) (1,049) 2,823 3,636
Other Income 335 2,188 1,700 70 20
Interest expenses 1,944 2,200 1,810 1,871 1,925
PBT (507) (3,325) (1,159) 1,023 1,731
Tax 703 (797) (301) 266 450
Extraordinary Items (200) (224) 0 0 0
Minority Int./Income from Assoc. 0 0 0 0 0
Reported Net Income (1,409) (2,752) (858) 757 1,281
Adjusted PAT (1,209) (2,528) (858) 757 1,281

Balance Sheet
Y/E Mar (Rs mn) FY20 FY21 FY22E FY23E FY24E
Equity share capital 440 547 547 547 547
Reserves & surplus 926 1,270 412 1,060 2,220
Net worth 1,366 1,817 959 1,607 2,767
Minority Interest 0 0 0 0 0
Loan Funds 21,915 20,054 20,259 20,448 20,118
Net deferred tax liability (2,641) (3,424) (3,424) (3,424) (3,424)
Total Liabilities 20,640 18,447 17,794 18,631 19,461
Net block 19,126 17,107 16,833 17,537 17,469
Investment 2,057 1,279 779 29 0
Current Assets 16,727 13,902 12,678 16,176 16,838
Cash & bank balance 13 416 420 253 23
Other Current Assets 3,936 4,400 3,288 4,270 4,271
Current liabilities & Provision 17,370 13,870 12,525 15,140 14,875
Net current assets (643) 32 153 1,036 1,962
Misc. exp 0 0 0 0 0
Total Assets 20,640 18,447 17,794 18,631 19,461

Cash Flow
Y/E Mar (Rs mn) FY20 FY21 FY22E FY23E FY24E
PBT (Ex-Other income) (NI+Dep) (707) (3,549) (1,159) 1,023 1,731
Other Non-Cash items 0 0 0 0 0
Chg in working cap 710 (271) (117) (1,050) (1,156)
Operating Cashflow 2,981 52 2,608 5,204 5,997
Capital expenditure (2,143) (877) (700) (1,400) (1,400)
Free Cash Flow 838 (825) 1,908 3,804 4,597
Investments (1,116) 263 500 750 28
Other Investing Cash Flow 0 0 0 0 0
Investing Cashflow (930) 2,088 1,500 (580) (1,351)
Equity Capital Raised 0 3,000 0 0 0
Loans Taken / (Repaid) 1,237 (299) 0 (401) (300)
Dividend paid (incl tax) (70) 0 0 (109) (120)
Other Financing Cash Flow (3,308) (4,138) (4,005) (4,205) (4,416)
Financing Cashflow (2,206) (1,737) (4,105) (4,791) (4,876)
Net chg in cash (155) 404 3 (167) (230)
Opening cash position 167 13 416 420 253
Closing cash position 13 416 420 253 23
Source: Company, Emkay Research

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.

May 24, 2021 | 4

 Shoppers Stop (SHOP IN) India Equity Research | Result Update

Key Ratios
Profitability (%) FY20 FY21 FY22E FY23E FY24E
EBITDA Margin 16.3 3.1 10.1 18.8 19.5
EBIT Margin 3.3 (19.2) (4.4) 8.2 9.3
Effective Tax Rate (138.7) 24.0 26.0 26.0 26.0
Net Margin (3.6) (14.7) (3.6) 2.2 3.3
ROCE 9.6 (5.8) 3.6 15.9 19.2
ROE (21.7) (158.9) (61.8) 59.0 58.6
RoIC 9.0 (18.8) (6.3) 16.2 19.3

Per Share Data (Rs) FY20 FY21 FY22E FY23E FY24E

EPS (13.7) (23.1) (7.8) 6.9 11.7
CEPS 36.2 12.1 23.9 40.7 48.0
BVPS 15.5 16.6 8.8 14.7 25.3
DPS 0.8 0.0 0.0 1.0 1.1

Valuations (x) FY20 FY21 FY22E FY23E FY24E

PER (16.1) (9.6) (28.2) 31.9 18.9
P/CEPS 5.8 17.4 8.8 5.1 4.4
P/BV 14.2 13.3 25.2 15.0 8.7
EV / Sales 1.3 2.9 2.0 1.4 1.2
EV / EBITDA 7.2 79.7 17.8 6.8 5.8
Dividend Yield (%) 0.4 0.0 0.0 0.5 0.5

Gearing Ratio (x) FY20 FY21 FY22E FY23E FY24E

Net Debt/ Equity 14.9 10.1 19.9 12.6 7.3
Net Debt/EBIDTA 3.7 34.4 7.9 3.1 2.6
Working Cap Cycle (days) (7.1) (8.1) (4.1) 8.3 18.2

Growth (%) FY20 FY21 FY22E FY23E FY24E

Revenue (2.9) (49.0) 39.1 44.3 12.5
EBITDA 116.9 (90.3) 354.3 168.9 16.6
EBIT (6.8) (400.6) 0.0 0.0 28.8
PAT (279.0) 0.0 0.0 0.0 69.2

Quarterly (Rs mn) Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21

Revenue 7,092 539 2,924 7,076 6,712
EBITDA 766 (1,024) (347) 949 956
EBITDA Margin (%) 10.8 (189.9) (11.9) 13.4 14.2
PAT (1,328) (1,151) (1,022) (207) (371)
EPS (Rs) (15.1) (13.1) (11.6) (1.9) (3.4)
Source: Company, Emkay Research

Shareholding Pattern (%) Jun-20 Sep-20 Dec-20 Dec-20 Mar-21

Promoters 63.9 63.9 65.5 65.5 65.5
FIIs 6.7 6.6 5.6 5.6 5.8
DIIs 20.8 19.4 19.7 19.8 19.9
Public and Others 8.6 10.2 9.3 9.2 8.8
Source: Capitaline

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.

May 24, 2021 | 5

 Shoppers Stop (SHOP IN) India Equity Research | Result Update

RECOMMENDATION HISTORY TABLE RECOMMENDATION HISTORY CHART

Closing Period
Date TP Rating Analyst BUY Hold Sell Accumulate
Price (months)
Reduce Price Target Price
18-Jan-21 207 220 12m Hold Ashit Desai
625
20-Oct-20 170 210 12m Hold Ashit Desai
524
15-Aug-20 163 220 12m Hold Ashit Desai
17-Jun-20 165 225 12m Hold Ashit Desai 423

14-Apr-20 184 225 12m Hold Ashit Desai 322

08-Apr-20 187 225 12m Hold Ashit Desai
221
03-Feb-20 389 430 12m Hold Ashit Desai
120
25-Dec-19 326 430 12m Hold Ashit Desai

16-Nov-20
23-Nov-18

20-Nov-19
26-May-18

23-May-19

19-May-20

16-May-21
24-Oct-19 356 430 12m Hold Ashit Desai
20-Sep-19 374 450 12m Hold Ashit Desai
01-Aug-19 334 430 12m Hold Ashit Desai Source: Bloomberg, Company, Emkay Research
01-May-19 438 520 12m Hold Ashit Desai
09-Apr-19 417 555 12m Hold Ashit Desai
31-Jan-19 484 555 12m Hold Ashit Desai
Source: Company, Emkay Research

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.

May 24, 2021 | 6

 Shoppers Stop (SHOP IN) India Equity Research | Result Update

Emkay Alpha Portfolio – Consumer Goods & Retail

EAP sector portfolio
BSE200 EAP OW/UW EAP Weight
Company Name OW/UW (%)
Weight Weight (bps) (Normalised)
Consumer Goods & Retail 10.59 10.59 0% 0 100.00
Asian Paints 1.48 0.59 -60% -89 5.59
Berger Paints 0.22 0.00 -100% -22 0.00
Britannia Industries 0.47 0.50 7% 3 4.75
Colgate-Palmolive 0.25 0.31 23% 6 2.92
Dabur India 0.35 0.32 -10% -4 2.98
Emami 0.12 0.15 21% 3 1.43
Godrej Consumer Products 0.36 0.38 5% 2 3.56
Hindustan Unilever 2.44 1.93 -21% -51 18.25
ITC 2.12 2.20 4% 8 20.74
Marico 0.28 0.31 13% 4 2.94
Nestle India 0.72 0.65 -10% -7 6.16
Pidilite Industries 0.35 0.00 -100% -35 0.00
Analyst:
Analyst: Ashit
Ashit Desai
Desai Radico Khaitan 0.00 0.34 NA 34 3.18
United Breweries 0.10 0.54 430% 44 5.10
Contact
Contact Details
Details
United Spirits 0.00 0.36 NA 36 3.37
ashit.desai@emkayglobal.com
ashit.desai@emkayglobal.com
Varun Beverages 0.11 0.16 42% 5 1.47
+91
+91 22
22 6612
6612 1340
1340
ABFRL 0.07 0.16 146% 10 1.54
Sector
Sector Jubilant FoodWorks 0.22 0.25 14% 3 2.34
Consumer
Consumer Goods
Goods &
& Retail
Retail Page Industries 0.19 0.21 11% 2 2.02
Analyst
Analyst bio
bio Shoppers Stop 0.00 0.00 NA 0 0.00
Ashit
Ashit Desai holds
Desai holds aa PGDM
PGDM and and FRM
FRM (US
(US Titan Company 0.74 0.97 30% 22 9.14
GARP)
GARP) with 12 years of research
with 12 years of research Westlife Development 0.00 0.27 NA 27 2.52
experience
experience on on the
the sell
sell side.
side. His
His team
team Cash 0.00 0.00 NA 0 0.00
currently
currently covers 24 stocks in the Indian
covers 24 stocks in the Indian Source: Emkay Research
* Not under coverage: Equal Weight
Consumer
Consumer andand Retail
Retail space.
space.  High Conviction/Strong Over Weight  High Conviction/Strong Under Weight

Sector portfolio NAV

Base Latest
1-Apr-19 22-May-20 20-Nov-20 19-Feb-21 20-Apr-21 21-May-21
EAP - Consumer Goods & Retail 100.0 95.5 109.9 117.5 119.8 126.5
BSE200 Neutral Weighted Portfolio (ETF) 100.0 90.5 105.1 112.2 115.9 119.4
*Performance measurement base date 1st April 2019
Source: Emkay Research

Price Performance (%)

1m 3m 6m 12m
EAP - Consumer Goods & Retail 5.5% 7.6% 15.1% 32.5%
BSE200 Neutral Weighted Portfolio (ETF) 3.0% 6.4% 13.5% 31.9%
Source: Emkay Research

NAV chart
NAV
130
119
108
97
86
75
Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Nov-20 Feb-21 May-21
EAP - Consumer Goods & Retail BSE200 Neutral Weighted Portfolio (ETF)
Source: Emkay Research
Please see our model portfolio (Emkay Alpha Portfolio): Nifty

Please see our model portfolio (Emkay Alpha Portfolio): SMID

“Emkay Alpha Portfolio – SMID and Nifty are a supporting document to the Emkay Alpha Portfolios
Report and is updated on regular intervals”

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.

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 Shoppers Stop (SHOP IN) India Equity Research | Result Update

Emkay Rating Distribution

Ratings Expected Return within the next 12-18 months.
BUY Over 15%
HOLD Between -5% to 15%
SELL Below -5%

Completed Date: 25 May 2021 01:12:49 (SGT)

Dissemination Date: 25 May 2021 01:13:49 (SGT)

Sources for all charts and tables are Emkay Research unless otherwise specified.

GENERAL DISCLOSURE/DISCLAIMER BY EMKAY GLOBAL FINANCIAL SERVICES LIMITED (EGFSL):

Emkay Global Financial Services Limited (CIN-L67120MH1995PLC084899) and its affiliates are a full-service, brokerage, investment banking, investment
management and financing group. Emkay Global Financial Services Limited (EGFSL) along with its affiliates are participants in virtually all securities trading
markets in India. EGFSL was established in 1995 and is one of India's leading brokerage and distribution house. EGFSL is a corporate trading member of
Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE), MCX Stock Exchange Limited (MCX-SX). EGFSL along with its
subsidiaries offers the most comprehensive avenues for investments and is engaged in the businesses including stock broking (Institutional and retail),
merchant banking, commodity broking, depository participant, portfolio management, insurance broking and services rendered in connection with
distribution of primary market issues and financial products like mutual funds, fixed deposits. Details of associates are available on our website i.e.
www.emkayglobal.com
EGFSL is registered as Research Analyst with SEBI bearing registration Number INH000000354 as per SEBI (Research Analysts) Regulations, 2014.
EGFSL hereby declares that it has not defaulted with any stock exchange nor its activities were suspended by any stock exchange with whom it is registered
in last five years, except that NSE had disabled EGFSL from trading on October 05, October 08 and October 09, 2012 for a manifest error resulting into a
bonafide erroneous trade on October 05, 2012. However, SEBI and Stock Exchanges have conducted the routine inspection and based on their
observations have issued advice letters or levied minor penalty on EGFSL for certain operational deviations in ordinary/routine course of business. EGFSL
has not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has its certificate of registration been cancelled
by SEBI at any point of time.
EGFSL offers research services to clients as well as prospects. The analyst for this report certifies that all of the views expressed in this report accurately
reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will
be, directly or indirectly related to specific recommendations or views expressed in this report.
Other disclosures by Emkay Global Financial Services Limited (Research Entity) and its Research Analyst under SEBI (Research Analyst) Regulations,
2014 with reference to the subject company(s) covered in this report
EGFSL and/or its affiliates may seek investment banking or other business from the company or companies that are the subject of this material. Our
salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions that
are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that may be
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distribution, publication, availability or use would be contrary to law or regulation or which would subject EGFSL or its group companies to any registration
or licensing requirement within such jurisdiction. Specifically, this document does not constitute an offer to or solicitation to any U.S. person for the purchase
or sale of any financial instrument or as an official confirmation of any transaction to any U.S. person. Unless otherwise stated, this message should not
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be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of EGFSL . All trademarks,
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of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read “Risk Disclosure Document for Capital Market
and Derivatives Segments” as prescribed by Securities and Exchange Board of India before investing in Indian Securities Market. In so far as this report
includes current or historic information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed.
 This publication has not been reviewed or authorized by any regulatory authority. There is no planned schedule or frequency for updating research
publication relating to any issuer.
 Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets

Disclaimer for U.S. persons only: This research report is a product of Emkay Global Financial Services Limited (Emkay), which is the employer of the
research analyst(s) who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States
(U.S.) and are not associated persons of any U.S. regulated broker-dealer and therefore the analyst(s) is/are not subject to supervision by a U.S. broker-
dealer, and is/are not required to satisfy the regulatory licensing requirements of Financial Institutions Regulatory Authority (FINRA) or required to otherwise
comply with U.S. rules or regulations regarding, among other things, communications with a subject company, public appearances and trading securities
held by a research analyst account. This report is intended for distribution to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S.
Securities and Exchange Act, 1934 (the Exchange Act) and interpretations thereof by U.S. Securities and Exchange Commission (SEC) in reliance on
Rule 15a 6(a)(2). If the recipient of this report is not a Major Institutional Investor as specified above, then it should not act upon this report and return the
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Investor. In reliance on the exemption from registration provided by Rule 15a-6 of the Exchange Act and interpretations thereof by the SEC in order to
conduct certain business with Major Institutional Investors.

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.

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 Shoppers Stop (SHOP IN) India Equity Research | Result Update

ANALYST CERTIFICATION BY EMKAY GLOBAL FINANCIAL SERVICES LIMITED (EGFSL)

The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and
their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is,
or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s) primarily responsible of the
content of this research report, in part or in whole, certifies that he or his associate 1 does not serve as an officer, director or employee of the issuer or the
new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real estate investment
trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the management of the issuer or the
new listing applicant). The research analyst(s) primarily responsible for the content of this research report or his associate does not have financial interests2
in relation to an issuer or a new listing applicant that the analyst reviews. EGFSL has procedures in place to eliminate, avoid and manage any potential
conflicts of interests that may arise in connection with the production of research reports. The research analyst(s) responsible for this report operates as
part of a separate and independent team to the investment banking function of the EGFSL and procedures are in place to ensure that confidential
information held by either the research or investment banking function is handled appropriately. There is no direct link of EGFSL compensation to any
specific investment banking function of the EGFSL.

1
An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of which the analyst, his spouse,
minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions
or instructions of the analyst.
2
Financial interest is defined as interest that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new listing applicant, or
financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not include commercial lending conducted at the
arm’s length, or investments in any collective investment scheme other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in
securities in respect of an issuer or a new listing applicant.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES BY EMKAY GLOBAL FINANCIAL SERVICES LIMITED (EGFSL):

Disclosures by Emkay Global Financial Services Limited (Research Entity) and its Research Analyst under SEBI (Research Analyst) Regulations, 2014
with reference to the subject company(s) covered in this report-:

1. EGFSL, its subsidiaries and/or other affiliates do not have a proprietary position in the securities recommended in this report as of May 24, 2021
2. EGFSL, and/or Research Analyst does not market make in equity securities of the issuer(s) or company(ies) mentioned in this Research Report
Disclosure of previous investment recommendation produced:
3. EGFSL may have published other investment recommendations in respect of the same securities / instruments recommended in this research
report during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment
recommendations published by EGFSL in the preceding 12 months.
4. EGFSL , its subsidiaries and/or other affiliates and Research Analyst or his/her relative’s does not have any material conflict of interest in the
securities recommended in this report as of May 24, 2021.
5. EGFSL, its subsidiaries and/or other affiliates and Research Analyst or his/her relative’s does not have actual/beneficial ownership of 1% or more
securities of the subject company at the end of the month immediately preceding the May 24, 2021
6. EGFSL, its subsidiaries and/or other affiliates and Research Analyst have not received any compensation in whatever form including compensation
for investment banking or merchant banking or brokerage services or for products or services other than investment banking or merchant banking
or brokerage services from securities recommended in this report (subject company) in the past 12 months.
7. EGFSL, its subsidiaries and/or other affiliates and/or and Research Analyst have not received any compensation or other benefits from securities
recommended in this report (subject company) or third party in connection with the research report.
8. Securities recommended in this report (Subject Company) has not been client of EGFSL, its subsidiaries and/or other affiliates and/or and
Research Analyst during twelve months preceding the May 24, 2021

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.

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 Shoppers Stop (SHOP IN) India Equity Research | Result Update

RESTRICTIONS ON DISTRIBUTION
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Emkay Global Financial Services Ltd.

CIN - L67120MH1995PLC084899
7th Floor, The Ruby, Senapati Bapat Marg, Dadar - West, Mumbai - 400028. India
Tel: +91 22 66121212 Fax: +91 22 66121299 Web: www.emkayglobal.com

NAVA
Digitally signed by NAVAL SETH
DN: c=IN, o=EMKAY GLOBAL
FINANCIAL SERVICES LIMITED, ou= ,
2.5.4.20=abda4ce9ac067602590d86cf
238501fd6c297f83ac23daf73ed9a76df
274942b, postalCode=400013,

L SETH
st=Maharashtra,
serialNumber=5486859566404ade1c4
ed187e19b0fbd0bc6ded66804bd4a1f
a0708c90aeeb5f, cn=NAVAL SETH
Date: 2021.05.24 22:44:57 +05'30'

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited
Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.

May 24, 2021| 10