Ambit Capital has buy on Relaxo Footwears, target price Rs 569

Ambit Capital has a buy rating on Relaxo Footwears with a target price of Rs 569 in the long term. Shares of Relaxo Footwears ended up 3.95% at Rs 564.65 on Monday while the BSE Sensex closed 136.93 pont up at 40,301.96.

Company Financials

For the quarter ended 30-09-2019, the company has reported standalone sales of Rs 621.77 crore, down -4.09% from last quarter sales of Rs 648.30 crore and up 14.05% from last year same quarter sales of Rs 545.19 crore. The company has reported net profit after tax of Rs 70.54 crore in the latest quarter.

Investment Rationale


The brokerage has maintained rating on the stock given the company's ability to drive volumes through broadening distribution and expansion of premium portfolio via Sparx, Flite and Bahamas. Valuations are attractive given 18% return on capital employed and best-in-class volume growth, said Ambit Capital.