Buy Relaxo Footwears target of Rs 650: Sharekhan
Sharekhan is bullish on Relaxo Footwears has recommended buy rating on the stock with a target price of Rs 650 in its research report dated November 05, 2019.
November 06, 2019 / 11:41 AM IST
Sharekhan's research report on Relaxo Footwears
Revenue grew by 14.5% y-o-y, led by premiumisation, a favourable product mix and price hikes in select products. Benign input costs and a better product mix drove up gross margins by 309 bps, while comparable OPM rose by ~150 bps to 15%, owing to operating efficiencies; effect of Ind-AS 116 on PBT stood at Rs. 2.1 crore. Sustained volume growth, capacity expansion, cost efficiencies and wider presence in untapped markets will drive operating performance.
We broadly maintain our estimates for FY2020 and FY2021 and maintain a Buy rating with a revised PT of Rs. 650.
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