Flash News Investment - - RECOMMENDATIONS -

The com­pany is en­gaged in man­u­fac­tur­ing and trad­ing of footwear and re­lated prod­ucts and is a mar­ket leader in the eco­nomic cat­e­gory. Its brands in­clude Hawaii, Flite, Sparx, School­mate, Elena, Ca­su­alz and Ba­hamas. In Q1FY19, its rev­enue was up by 17.3 per­cent YoY led by good vol­ume growth. EBITDA in­creased by 16.9 per­cent YoY due bet­ter prod­uct mix and op­er­at­ing ef­fi­cien­cies. Ad­justed PAT rose by 23 per­cent YoY. The com­pany is fo­cus­ing to ex­pand its dis­tri­bu­tion to western and south­ern mar­kets in In­dia. Also, the GST rate cut from 18 per­cent to 5 per­cent on footwear rang­ing from Rs 500 to Rs 1000 would ben­e­fit the com­pany. It plans to add 50 out­lets to its cur­rent net­work of 300 out­lets, which would gen­er­ate Rs 200 crore to­wards rev­enue. Thus, we rec­om­mend it as a BUY.

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