Sharekhan is bullish on Relaxo Footwears has recommended buy rating on the stock with a target price of Rs 825 in its research report dated August 03, 2020.
Sharekhan's research repor on Relaxo Footwears
Relaxo Footwears Limited’s (Relaxo’s) Q1FY2021 performance was better than expectations in light of NIL business during the 45-day lockdown and restriction on out-of-home travel. Revenue and PAT decreased by 44% and 52%, respectively. Value-for-money products, increasing presence on e-commerce platform and good relation with dealers channel would help Relaxo to post revival in performance in coming quarters. Lower per capita consumption in India at 1.66 pairs per annum as compared to developed countries at 6-7 pairs per annum, lower penetration of company in southern markets and strong product portfolio straddling the pyramid remain key catalysts of growth in the long run.
Outlook
We expect footwear segment to see early recovery post normalisation of the pandemic situation; we maintain a Buy recommendation on stock with an unchanged PT of Rs. 825.
For all recommendations report, click here
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