Sharekhan has given Buy recommendation for Relaxo Footwears with a target price of Rs. 1490 in its research report issued on Jan 31, 2022

Sharekhan’s research report on Relaxo Footwears

Relaxo Footwear’s (Relaxo) Q3FY2022 net revenue grew by 10.6% y-o-y to Rs. 743.5 crore, largely driven by price hikes undertaken; gross margin and OPM were down 572 bps and 577 bps, respectively, resulting in a 20.6% y-o-y decline in PAT. Average realisation per pair came it higher at Rs. 164 per pair (vs Rs. 134 per pair in Q3FY21) while volume was reported lower at 4.5 crore pairs (vs 5 crore pairs in Q3FY21). Capacity enhancement (capacity of 1.5 lacs per day commissioned during Q3) along with diverse portfolio, enhanced distribution network, sustained investment behind brands, and a customer-centric approach will aid Relaxo in achieving double-digit topline growth in the medium term.


The stock has corrected by 15% from its recent high and trades at 77.7x/61.9x its FY2023/FY2024E EPS. We maintain Buy with an unchanged PT of Rs. 1,490.

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At 16:00 hrs Relaxo Footwears was quoting at Rs 1,269.95, up Rs 38.40, or 3.12 percent.

It has touched an intraday high of Rs 1,270.00 and an intraday low of Rs 1,235.20.

It was trading with volumes of 21,590 shares, compared to its thirty day average of 8,844 shares, an increase of 144.12 percent.

In the previous trading session, the share closed down 3.11 percent or Rs 39.55 at Rs 1,231.55.

The share touched its 52-week high Rs 1,447.00 and 52-week low Rs 810.00 on 04 November, 2021 and 19 March, 2021, respectively.

Currently, it is trading 12.24 percent below its 52-week high and 56.78 percent above its 52-week low.

Market capitalisation stands at Rs 31,612.36 crore.

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