Relaxo Footwears Ltd. share price target

We maintain a positive stance on the stock from a long-term perspective in light of immense growth potential, as we maintain our BUY rating with a revised TP of Rs 1,350/share assigning a target multiple of 57x PE to FY24E EPS.

Relaxo has, over the years, maintained balance sheet prudence with controlled working capital cycle (NWC days: 60 days), healthy asset turns of 2.5x and generating RoCE of 20%+...

Relaxo over the years has maintained b/s prudence with controlled WC cycle (NWC days: 60), healthy asset turn of 2.5x, generating RoCE of 20%+ Q2FY22 Results: Revenue came in line with estimates, profitability was below our...

Relaxo has, over the years, maintained balance sheet prudence with controlled working capital cycle (NWC days: 60 days), healthy asset turn of 2.5x and generating RoCE of 20%+...

We reduce our FY22/23/24 estimates on account of slower-than-expected recovery and revise our rating from BUY to HOLD with a revised TP of Rs 1,060/share (previous: 1,145/share) and value at a target PE multiple of 55x FY24E EPS.

We continue to maintain BUY with a TP of Rs. 1,145/ share and we roll forward to FY24E numbers with a target PE multiple of 57x FY24E EPS.

Relaxo Footwears Ltd.'s (Relaxo) Q4FY21 result was marginally above estimates on key parameters. Strong demand traction for mass product supported sales volume in Q4, while better product mix and savings in promotional expenses as well as prudent cost management led to EBITDA margin improvement. Net sales increased by 38.3% YoY to Rs7,477mn, while EBITDA was higher by 69.3% YoY to Rs1,629mn. The company reported net profit of Rs1,022mn, higher by 97.2% over Q4FY20. After a robust Q4FY21, near term business may get impacted due to second wave of Covid-19 and statewide lockdown, however, we believe that Relaxo will continue to outperform the organized...

Based on the above themes we recommend the following stocks: ICICI Bank, SBI, Equitas SFB, Federal Bank, Bharti Airtel, HCL Tech, Tech Mahindra, Varun Beverages, Relaxo Footwears, Amber Enterprises, Camlin Fine Science, Minda Industries, Steel Strip Wheels. Lupin & ACC

Rural Growth Benefiting RelaxoRelaxo continues to perform well despite the country only beginning to recover from the negative impacts of the pandemic. The Q3FY21 results were above our expectations as rural India rebounded faster