Mirae Asset initiates coverage on India's Relaxo Footwear with 'buy'; stock rises

Relaxo Footwears

28/11/2023 09:37

** Shares of Relaxo Footwear  RLXO.NS  up 2.2% at 906.80
rupees
    ** Mirae Asset Capital Markets initiates "buy" with PT of
1,067 rupees; sees 20% upside in stock
    ** Softening raw material prices and Relaxo's product
capability coupled with demand revival can lead to market share
gains for co in next few quarters, brokerage says
    ** Analysts at Mirae Asset expect Relaxo's revenue to grow
at 17.2% over FY23-26     
    ** India’s 70% of footwear pyramid is priced below 1,000
rupees providing huge growth potential given Relaxo's wide
reach, strong manufacturing base, brokerage adds
    ** Average rating of 12 analysts is equivalent of "hold",
median PT of 883.5 rupees - 2.5% lower than its current price -
LSEG data 
    ** Stock down ~0.5% YTD; it had fallen more than 30% in 2022
  

 (Reporitng by Nishit Navin in Bengaluru)
 ((nishit.navin@thomsonreuters.com;))