Metro Brands IPO: How good is it?

In our story, Metro Brands IPO: Information analysis, we shed light on the key details of the IPO, along with important information about the company. Here we will answer some questions about Metro Brands and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? Yes. In the last 12 months ended September 2021, the company's earnings before tax stood at Rs 184.5 crore. 2) Will the company be able to scale up its business? Yes. Given its asset-light model and favourable industry dynamics (in terms of a lower share of organised players), the company would be able to scale up its business. 3) Does the company have recognisable brands truly valued by its customers? Yes. The company's various brands are highly valued by its customers. 4) Does the company have high repeat customer usage? Yes. In FY21, repeat sales by the members of the company's loyalty programs accounted for 55.7 per cent of total store product sales (excluding 'Walkway' stores). 5) Does the company have a credible moat? Yes. Its asset-light model, a vast vendor network and a strong combination of in-house and third-party brands provide the company with a credible moat. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? Yes. The company is sufficiently robust to major regulatory or geopolitical risks. 7) Is the business of the company immune from easy repl