Relaxo Footwears - Expect 7% Volume Growth; Expensive Valuations Compel 'Sell' Rating: Yes Securities

The brokerage initiates coverage on the company with a Sell rating, valuing the company at P/E(x) of 60x on FY26E EPS, for a target price of Rs 718.

Relaxo Footwear store. (Source: Company official Facebook page)

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Yes Securities Report

Relaxo Footwears Ltd. has built a robust position in the mass open footwear segment with a vast presence covering both trade and D2C channels.

Notably, Relaxo Footwear is the only company among its peers to manufacture 100% of its products in-house. We reckon the company should benefit from the premiumisation trend with increasing penetration of the “Sparx” and “Flite” brands.

We initiate coverage on Relaxo Footwears, however, owing to premium valuations we assign a Sell rating to the stock.

Click on the attachment to read the full report:

Yes Securities Relaxo Footwear_Initiating Coverage.pdf
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