In addition, increase in SSSG to 5-7% and acceleration in distribution business to +20% is likely to increase operating leverage for the company. In the long run Khadim’s sales growth would remain strong vs peers, mainly due to lower penetration, increasing reach, better economic offerings and ongoing store additions. However, in the ensuing quarters, the company would have to battle against a very strong base and increased competition. Valuing Khadim at 23x FY21E EPS (50% discount to BATA) to arrive at a TP of Rs 692. Maintain Buy.