Sharekhan's reserach report on Relaxo FootwearsRelaxo’s strong presence in the lucrative mid-priced footwear segment (through its top-of-the-mind recall brands like Hawaii, Flite and Sparx) along with its integrated manufacturing set-up, lean working capital requirement and vigilant management puts it in a sweet spot to cash in on the strong growth opportunity unfolding in the footwear category due to a shift from unbranded to branded products. Thus, we remain positive on the business. We introduce our FY2018 estimates in this note, expecting the revenues and earnings to grow at a CAGR of 21.3% and 30.9% respectively over FY2015-18. We also roll over our multiple from FY2017 estimate to FY2018 (valuing the stock at 33x its FY2018E), at a price target of Rs 635. We thus maintain our Buy rating on the stock. For all recommendations, 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.
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