Shoppers Stop shares deliver almost no returns in 10 years; Experts decode the road ahead | Can the stock turn around?

Shoppers Stop shares have struggled to create wealth for investors over the past decade, with the stock delivering a negative return of 2.45% over 10 years. Despite a sharp recovery in revenue and ongoing efforts to strengthen its premium retail positioning, profitability pressures, intense competition and weak share-price momentum continue to cloud its outlook.

The stock has also remained under pressure in the near term. Shoppers Stop shares have fallen 34.86% over the past year, 14.33% in the past month and 11.28% so far in 2026. Over five years, the stock has gained just 5.39%, underscoring its prolonged underperformance.

Gaurav Arora, Head of Research at SAHI, said Shoppers Stop's lacklustre decade-long returns reflect a persistent gap between revenue growth and profitability rather than a single weak year.

The company's revenue increased from around ₹1,700–1,800 crore in FY21 to more than ₹5,000 crore in FY26. However, it reported a loss of ₹36 crore in FY26, as higher rentals from new store openings, rising employee costs and softer demand for premium lifestyle apparel weighed on earnings.

Arora added that competition from value retailers, e-commerce platforms and large organised retail players such as Reliance Retail has further intensified pressure on margins. While the company's premiumisation strategy and private-label business, which accounts for around 13% of sales, offer potential growth opportunities, investors may need to see several quarters of consistent performance before gaining confidence in a sustained turnaround.

Shoppers Stop's second-quarter performance for FY27 was broadly in line with expectations, according to ICICI Securities. Standalone revenue grew 4.4% year-on-year, while department-store like-for-like (LFL) growth stood at 2%, or 7% after adjusting for festive-calendar shifts.

EBITDA margin expanded by 111 basis points year-on-year to 15.1%. However, these operational improvements have yet to translate into sustainable net profitability. The standalone business reported a net loss of ₹2.3 crore, with depreciation on leased assets and finance costs continuing to weigh on earnings.

The brokerage noted that premiumisation, higher-ticket purchases, inventory discipline and store expansion are encouraging. However, it wants to see sustained GAAP profitability and improved returns before turning more constructive on the stock.

ICICI Securities has reiterated its 'Hold' rating on Shoppers Stop and reduced its FY27 and FY28 earnings estimates by approximately 1.9% and 2.4%, respectively. It expects revenue and EBITDA to grow at a compound annual growth rate of 11.5% and 13.6%, respectively, between FY26 and FY28.

The brokerage has also cut its DCF-based target price to ₹350 from ₹360.

The technical outlook remains cautious, with analysts identifying important support and resistance levels that could determine the stock's next move.

Hitesh Tailor, Technical Research Analyst at Choice Broking, said Shoppers Stop's monthly chart reflects prolonged stagnation, with the stock facing persistent selling pressure after repeated rejections near its 200-month exponential moving average (EMA).

Trading around ₹336.80, the stock has struggled to sustain gains after encountering resistance near ₹420, which coincides with the 200-month EMA. Its monthly relative strength index (RSI) stands at 36.15, below its signal line, indicating weak long-term momentum.

Tailor identified ₹420 as a key resistance level and ₹280 as major structural support. In his view, the broader trend remains sideways to bearish unless the stock delivers a decisive close above ₹420.

Rajesh Bhosale, Technical Analyst at My Advisor Alpha, highlighted the ₹330 level as a crucial near-term support, as the stock is trading around its July swing low, from which it had previously staged a sharp rally.

According to Bhosale, a sustained hold above ₹330 could trigger a recovery towards ₹365. However, a breakdown below this level may expose the stock to further downside towards ₹310.

Arora also flagged ₹320 as an important level to monitor. A breach could drag the stock towards ₹290, while a sustained move above ₹360 would be needed to improve the near-term technical outlook.

Shoppers Stop's turnaround hinges on whether revenue growth and operational improvements can translate into consistent profits and stronger returns for shareholders. Its premiumisation strategy, private labels and store expansion offer potential upside, but elevated costs and competition remain significant challenges.

For now, ICICI Securities' Hold rating reflects the need for clearer evidence of earnings recovery. Technically, the ₹320–330 zone is important for near-term stability, while ₹360 and ₹420 represent successive resistance levels to watch.

Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.

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