JM Financial has a buy on Relaxo citing strong growth

RelaxoNSE -2.37 % has shown eight consecutive quarters of doubledigit volume growth in challenging circumstances and analysts expect the trend to continue. The stock is currently trading at FY21 estimated PE of 39.7 times and EV/ EBITDA of 21.7. Relaxo has been a consistent performer in the listed space with a 5-year revenue CAGR of 13.5 per cent and PAT CAGR of 21.7 per cent.

JM FinancialNSE -0.90 % has initiated coverage on Relaxo Footwears with a buy rating and said its premium valua ..

“Growth will be on the back of multi branded outlet (MBO) expansion coupled with 10-15 COCO stores, 25-30 FOFO stores p.a. and good growth from higher realisation products like Sparx and Flite as its foray in the south and west continues” said a note by JM Financials. “It still has scope to grow in its traditional markets of the North and East as the opportunity of consumers up-trading from the unorganised to the organised markets play out.”