Relaxo Footwear_40% Upside target in 11 monthsDate: 01 Jan 2021
Relaxo Footwear
CMP: 821
It is forming Ascending Triangle Pattern. If the price breaks out above the resistance of 830 and sustains strongly with good volumes over the next 5-10 days then upside target price will be 1,160 for which the target date will be 30 Nov 2021. The stock is already trading well above all its Daily EMAs.
The stock trades with RoCE @23.4%, RoE @19% and EPS of 9.11. The CAGR of last 5 year's. EPS is 12.7% which is a good growth rate for EPS.
Operating Profit Margin has improved from 14% to 18% in the last 5 yrs. On QoQ basis the OPM has been increasing sequentially 14% (Sep 2018), 17% (Sep 2019) to 22% in Sep 2020. This gives rise to expectation that the OPM will keep rising in the coming years with higher sales volume and better operating efficiencies.
Target Price: 1160
Target Date 30 Nov 2021
Stop Loss: 750
