Buy Relaxo Footwears: target of Rs 1490: Sharekhan

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

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26 Aug, 2025 12:21

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Sharekhan's research report on Relaxo Footwears

Relaxo Footwear’s (Relaxo) Q3FY2022 net revenue grew by 10.6% y-o-y to Rs. 743.5 crore, largely driven by price hikes undertaken; gross margin and OPM were down 572 bps and 577 bps, respectively, resulting in a 20.6% y-o-y decline in PAT. Average realisation per pair came it higher at Rs. 164 per pair (vs Rs. 134 per pair in Q3FY21) while volume was reported lower at 4.5 crore pairs (vs 5 crore pairs in Q3FY21). Capacity enhancement (capacity of 1.5 lacs per day commissioned during Q3) along with diverse portfolio, enhanced distribution network, sustained investment behind brands, and a customer-centric approach will aid Relaxo in achieving double-digit topline growth in the medium term.

Outlook

The stock has corrected by 15% from its recent high and trades at 77.7x/61.9x its FY2023/FY2024E EPS. We maintain Buy with an unchanged PT of Rs. 1,490.

More Info

At 16:00 hrs Relaxo Footwears was quoting at Rs 1,269.95, up Rs 38.40, or 3.12 percent.

It has touched an intraday high of Rs 1,270.00 and an intraday low of Rs 1,235.20.

It was trading with volumes of 21,590 shares, compared to its thirty day average of 8,844 shares, an increase of 144.12 percent.

In the previous trading session, the share closed down 3.11 percent or Rs 39.55 at Rs 1,231.55.

The share touched its 52-week high Rs 1,447.00 and 52-week low Rs 810.00 on 04 November, 2021 and 19 March, 2021, respectively.

Currently, it is trading 12.24 percent below its 52-week high and 56.78 percent above its 52-week low.

Market capitalisation stands at Rs 31,612.36 crore.

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