Sharekhan is bullish on Relaxo Footwears has recommended buy rating on the stock with a target price of Rs 969 in its research report dated May 13, 2019.
Sharekhan's research report on Relaxo Footwears
Relaxo Footwears Limited (Relaxo) posted strong volume-led revenue growth in Q4FY2019, but pressure on raw-material led to flat gross margins. Input costs expected to soften going ahead; operational efficiencies will keep margins at 14-15%. Better product mix, increase in distribution reach and shift in consumer preference will improve growth prospects in the long run. We have marginally reduced our earnings estimates for FY2019 and FY2020 to factor in lower-than-expected OPM.
We maintain our Buy recommendation with a revised price (PT) target of Rs. 969.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.