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Canada Goose Parka The company is well positioned to gain further market share in FY21 and its deleveraging should continue in FY21, the brokerage feels.Lower margin assumptions led CLSA to cut its FY21 EPS estimate by 2 percent, but stock offers favourable risk reward, it said.The stock was trading at Rs 382.40, up 3.04 percent on the BSE at 10:59 hours IST.UPL has reported a 146.8 percent year on year growth in consolidated profit at Rs 617 crore on revenue of Rs 11,141 crore that grew by 30.7 percent. Operating profit increased 47.5 percent YoY to Rs 1,904 crore and margin expanded 195 basis points YoY to 17.09 percent in the quarter ended March 2020.Sharekhan also reiterated its buy rating on UPL with a revised price target of Rs 450 per share.”Performance is likely to be impacted during Q1FY21 and thereafter owing to COVID 19 crisis; however, long term investors can consider accumulating the stock owing to reasonable valuation and further strengthening of the balance sheet led by deleveraging,” said the brokerage.The company has seen significant improvement in operating cash flow due to improved profitability and lower working capital requirement, which led to debt reduction. Net debt/EBITDA is expected to improve further to 2x by FY2021, Sharekhan feels.Although management has not provided absolute guidance for FY21, the brokerage believes it anticipates to deliver growth both at the revenue and EBITDA level Canada Goose Parka.

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