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Buy Relaxo Footwears: target of Rs 930: Sharekhan

Sharekhan is bullish on Relaxo Footwears has recommended buy rating on the stock with a target price of Rs 930 in its research report dated December 31, 2020.

February 17, 2021 / 06:33 PM IST

Sharekhan's research report on Relaxo Footwears

Unlike other retail or footwear companies, Relaxo’s business recovered faster (with revenues returned to 93% of pre-COVID levels in Q2), led by strong demand for open-ended value footwear products (contributed 80% revenues in H1). Volumes and realisations clocked CAGRs of 10% and 3% over FY2017-20. Sustained innovation, focus on improving penetration in southern and western India and shift to branded products will aid sustained volume growth. A better mix led by strong traction in premium products will drive realisations. OPM improved to 17% in FY2020 from 14% in FY2017. We expect margins to keep rising in the coming years with higher sales volume and better operating efficiencies.


We maintain a Buy on Relaxo Footwears Limited (Relaxo) with a revised PT of Rs. 930; it remains one of our top picks in the consumer discretionary space with value-for-money offerings; strong profitability and a lean balance sheet.

For all recommendations report, click here


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first published: Jan 1, 2021 02:15 pm
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