Soft revenue; RM cool off pushes PAT growth

11 Mar 2024
5 Min read 
  • Relaxo Footwears posted a soft 5% YoY revenue growth in 3QFY24.
  •  Improvement in gross margin and controlled costs led to 21%/28% YoY growth in EBITDA/PAT.
  •  Price cuts and softening raw material prices contributed to a 15% volume growth YoY.
  •  Estimates have been cut due to the weak macro environment and slow recovery.
  •  The stock is trading at an expensive valuation in a soft earnings environment.
  •  Neutral rating maintained with a target price of INR850.
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