Relaxo Footwear's (Relaxo) Q1FY2020 reported financials are not comparable on a y-o-y basis due to the implementation of Ind AS 116. Relaxo's revenue and operating profit grew by 15.4% each on a comparable basis, driven by strong volume growth and favourable product mix. Implementation of Ind AS 116 impacted PAT by ~Rs. 2 crore. Relaxo is expected to maintain its steady operating performance backed by sustained volume growth. We expect OPM to sustain at 1415% in FY2020 on account of benign raw material prices and operating efficiencies. We maintain our Buy recommendation on the stock with...