Soft revenue; RM cool off pushes PAT growth

Company

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.