Goldman Sachs commences coverage on Metro Brands and Bata India

Goldman Sachs has commenced coverage on Indian footwear companies Metro Brands Ltd with a "Buy" rating and Bata India Ltd with a "Neutral" recommendation, citing optimism regarding their growth potential.

Goldman Sachs has assigned a target price of 1,450 rupees for Metro Brands, representing a potential upside of 29% from its closing price of 1,125 rupees on March 21. Meanwhile, for Bata India, the target price of 1,470 rupees implies a 7% increase.

Goldman Sachs said India's branded footwear industry is underpenetrated, with ample room for growth. The brokerage identified sports and athleisure as a significant multi-decade, double-digit growth opportunity. Metro Brands could leverage the opportunity in sports and athleisure with Fila, said Goldman Sachs.

According to the brokerage, multi-brand footwear retailers are well-positioned for growth in this market.