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Relaxo Footwears Ltd Stock Analysis

Large Cap
Evaluated by 2804 users | BSE: 530517 | NSE: RELAXO |
Footwear

Relaxo Footwears (Relaxo) is one of the leading and most popular footwear companies in India. A household name, literally. With its headquarter in New Delhi and few manufacturing units, Relaxo produces losts pairs of footwear, every day. Relaxo...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Relaxo Footwears Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 13.23%16.72%15.4%18.12%21.48%20.04%16.4%19.44%16.69%18.71%
Value Creation Index 0.100.390.280.510.790.670.370.620.390.56
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6928651,0101,2121,4811,7121,6311,9412,2922,410
Y-o-Y Gr. Rt.-25%16.8%20.1%22.2%15.6%-4.7%19%18.1%5.2%
Adjusted EPS (Rs.) 1.121.671.852.714.34.864.686.616.928.91
Y-o-Y Gr. Rt.-49.1%10.8%46.5%58.7%13%-3.7%41.2%4.7%28.8%
Book Value per Share (Rs.) 5.617.188.9311.5215.322025.2431.4444.2550.93
Adjusted Net Profit 26.84044.465.2103117113159172221
Net Op. Cash Flow (Rs. Cr.) 43.772.754125107159180154123319
Debt to Cash Flow from Ops 4.1723.791.592.231.480.990.990.910.06
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Relaxo Footwears Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 14.9%10.2%13.9%5.2%
Adjusted EPS 25.9%15.7%23.9%28.8%
Book Value per Share 27.827.226.415.1
Share Price 56% 28.8% 38% 46.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 21.9326.0522.9526.5432.0627.5120.7223.2718.3918.6
Operating Profit Margin (%) 10.4610.9810.8812.1913.5814.0714.1815.6114.417.12
Net Profit Margin (%) 3.884.624.45.376.986.816.98.27.499.17
Debt to Equity 1.351.020.960.720.650.490.290.20.10.02
Working Capital Days 7574747476849998106118
Cash Conversion Cycle 35384445474955505461
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 70.92%
Institutions 10.88%
Non-Institutions 18.20%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Relaxo Footwears Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Relaxo Footwears Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Relaxo Footwears Ltd's performance infers:

Relaxo Footwears Ltd earnings have grown by 15.7%, whereas share price has appreciated 28.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Relaxo Footwears Ltd share prices over the last 10 years. Here is what we found out:

Relaxo Footwears Ltd share price has appreciated 51.6% annually over the past ten years.

Relaxo Footwears (Relaxo) is one of the leading and most popular footwear companies in India. A household name, literally. With its headquarter in New Delhi and few manufacturing units, Relaxo produces losts pairs of footwear, every day. Relaxo footwear’s range boasts a fine combination of comfort, style, and quality workmanship. A wide collection of fashionable, colourful, comfortable and durable footwear for men, women and children. For a changing

Relaxo Footwears (Relaxo) is one of the leading and most popular footwear companies in India. A household name, literally. With its headquarter in New Delhi and few manufacturing units, Relaxo produces losts pairs of footwear, every day. Relaxo footwear’s range boasts a fine combination of comfort, style, and quality workmanship. A wide collection of fashionable, colourful, comfortable and durable footwear for men, women and children. For a changing India. For a trendsetting India. Relaxo is geared to meet the quality and choice expectations of a young India with its sub-brands such as Sparx, Bahamas, Flite, Schoolmate and Relaxo Hawaii.

Business area of the company

The company is largest footwear manufacturing company in India, which deals in non-leather products i.e. rubber / EVA / PU slippers, canvas/ sport / school shoes, sandals, etc. It has a portfolio of brands including major brands like Relaxo, Flite, Sparx and Bahamas. The company sells its products through retailers served through distributors, retail outlets, exports, e-commerce, modern trade etc. It has state of the art manufacturing facilities, Bahadurgarh (Haryana), Bhiwadi (Rajasthan) and in Haridwar (Uttarakhand). The company’s business process is managed through SAP & SAP HANA.

Brands

  • Bahamas
  • Flite
  • Sparx
  • Schoolmate

Awards

  • CNBC TV18 (Making it big CNBC TV 18 HSBC 2016).
  • Dun & Bradsheet 2016 Top 500 Company in Net Profit.
  • Dun & Bradsheet 2016 Top 500 Company in Total Income.
  • ET500 Future Ready Company.
  • ICRA Safety Rating.
  • India's Largest Corporation 2016.
  • India's Most Valuable Company Business Today 2016 Market Capitalisataion.
  • India's Most Valuable Company Business Today 2016 Net Profit.
  • The Next 500 Fortune India.
  • Best Corporate Brands by The Economic Times.
  • India Most Valuable CEOs by Business World.
  • India Best Corporate Brands 2016 at The Economics Times Best Corporate Brands Summit.
  • First place at Council For Leather Exports for excellent export performance during 2014-15.
  • India Fastest Growing Companies by Business World.
  • MD Ramesh Kumar Dua has been ranked among Top 100 CEOs by Business Today.
  • The Brand Trust Report 2016 ranks sparx among India’s most trusted brand.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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