Relaxo Footwears Q2 Review - Higher Competitive Intensity Weighs On Growth; Assign 'Sell': Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.With a loss of market share due to increased competition we believe Relaxo Footwears Ltd. would register a flattish volume growth in FY25E. The resurgence in demand with the festive and wedding season should see H2 FY25 to be stronger than H1 FY25. Volume growth should be aided by the implementation of BIS that would weed out the regional, unorganized players. Hence, we expect a 4% volume compound annual growth rate over FY24-FY27E as company seeks to regain lost market share. We expect an average selling price improvement of 3% CAGR over FY24-FY27E as company aims to improve product mix. We reckon margins to improve back to 14% by FY27E. Overall, we expect revenue/Ebitda/PAT to grow at 7%/7%/10% CAGR respectively over FY24-FY27E. At current market price, stock trades at a rich multiple of 70 times on FY27E EPS of Rs 10.6. We continue to value the company at P/E(x) of 60 times, arriving at a target price of Rs 636. Hence, we maintain our Sell rating on the stock..Click on the attachment to read the full report:.Zydus Lifesciences - High Base To Keep Earnings Per Share Muted, Specialty Growth Key: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Relaxo Footwears Q2 Review - Higher Competitive Intensity Weighs On Growth; Assign 'Sell': Yes Securities

At current market price, the stock trades at a rich multiple of 70 times on FY27E EPS of Rs 10.6, says the brokerage.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Relaxo Footwears Q2 Review - Higher Competitive Intensity Weighs On Growth; Assign 'Sell': Yes Securities

At current market price, the stock trades at a rich multiple of 70 times on FY27E EPS of Rs 10.6, says the brokerage.

Choose a plan

Follow Us

DOWNLOAD THE APP