Baazar Style share price jumps 5% despite Rekha Jhunjhunwala trimming stake during Q4FY25

Baazar Style Retail share price surged as much as 5 per cent in Wednesday's trading session despite ace investor Rekha Jhunjhunwala reducing her stake in the small-cap stock.

Jhunjhunwala has trimmed her stake in the small-cap stock by 26 basis points during the March quarter, lowering it to 3.39 per cent from 3.65 per cent in the December quarter. Trendlyne revealed that the ace investor publicly holds 21 stocks, with a total net worth exceeding ₹18,033 crore.

Baazar Style Retail share price has remained volatile since its listing in September last year. The stock has fallen over 23 per cent in past one year. However, the scrip has gained nearly 29 per cent in one month.

Should you bur or sell?

JM Financial has recently begun coverage on Baazar Style Retail with a ‘buy’ recommendation and a target price of ₹400, suggesting a potential gain of more than 71% from its current market price.

The brokerage anticipates the company to post strong growth over FY24-27E, with expected CAGRs of 30% in revenue, 36% in EBITDA, and 50% in PAT.

JM Financial anticipates that Style Baazar's Return on Equity (RoE) and Return on Invested Capital (RoIC) will rise to 22% and 19% respectively by FY27, supported by stronger profitability and improved working capital efficiency.

"We believe, this is also one of the key reason for Style Baazar’s low valuations as reported numbers optically look weak but are strong on Pre Ind AS basis. We initiate coverage on Style Baazar with a BUY rating and a target price of ₹400. Consistent execution, improving profitability and working capital days can lead to further re-rating of the stock," JM Financial said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.