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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Relaxo Footwears Ltd

About the Company - Relaxo Footwears Ltd

Relaxo Footwears Ltd. is a Public Limited Listed company incorporated on 13/09/1984 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1984PLC019097 and registration number is 019097. Currently Company is involved in the business activities of Manufacture of footwear made primarily of vulcalized or moulded rubber and plastic.. Company’s Total Operating Revenue is Rs. 2653.27 Cr. and Equity Capital is Rs. 24.89 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Leather/Synthetic ProductsAggarwal City Square, Plot No. 10, Manglam Place, Delhi Delhi 110085rfl@relaxofootwear.com
http://www.relaxofootwear.com
Management
NamePosition Held
Mr. Ramesh Kumar DuaManaging Director
Mr. Mukand Lal DuaWhole Time Director
Mr. Nikhil DuaWhole Time Director
Mr. Deval GangulyWhole Time Director
Mr. Vivek KumarIndependent Director
Mr. Pankaj ShrimaliIndependent Director
Ms. Deepa VermaIndependent Director
Mr. Kuldip Singh DhingraIndependent Director
Mr. Gaurav DuaWhole Time Director
Mr. Rajeev Rupendra BhadauriaIndependent Director

Relaxo Footwears Ltd. Share Price Update

Share PriceValue
Today₹838.30
Previous Day₹840.05

Basic Stock Data of Relaxo Footwears Ltd

Market Cap 20,828 Cr.
Current Price 837
High / Low974/748
Stock P/E103
Book Value 76.2
Dividend Yield0.30 %
ROCE11.8 %
ROE8.65 %
Face Value 1.00

Data Source: screener.in

Competitors of Relaxo Footwears Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mirza International Ltd 686 Cr. 49.774.0/29.952.2 39.60.00 %7.57 %4.59 % 2.00
Superhouse Ltd 247 Cr. 224287/19415.8 4040.45 %8.20 %6.07 % 10.0
Sreeleathers Ltd – a Premier Leather Goods Manufacturer 762 Cr. 329436/15926.4 1710.00 %9.80 %7.23 % 10.0
Bata India Ltd 18,174 Cr. 1,4141,771/1,38162.8 1090.94 %19.6 %19.8 % 5.00
Industry Average428.25 Cr150.9339.3180.90.35%11.29%9.42%6.75

Relaxo Footwears Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales576672748497714744698667670681765739715
Expenses449523585431598622587581610609647631624
Operating Profit1271491636611712211186597211810892
OPM %22%22%22%13%16%16%16%13%9%11%15%15%13%
Other Income54757564644711
Interest4454444744445
Depreciation28282727282929303132333537
Profit before tax10012113840929484543041857660
Tax %25%25%26%23%25%25%25%28%26%26%26%26%27%
Net Profit759010231697063392230635644
EPS in Rs3.033.634.111.252.762.822.531.550.901.212.542.261.78

Relaxo Footwears Ltd Quarterly Chart

Relaxo Footwears Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8459811,1801,4411,6681,6311,9412,2922,4102,3592,6532,7832,900
Expenses7508711,0321,2401,4271,4001,6391,9641,9981,8612,2352,4422,511
Operating Profit95110148201241231302328413498418341389
OPM %11%11%13%14%14%14%16%14%17%21%16%12%13%
Other Income0120714412822231627
Interest191823182315991919172217
Depreciation2326314047515462109110114125136
Profit before tax536896143178178244268292391311210262
Tax %25%34%31%28%32%33%34%35%22%25%25%26%
Net Profit404566103120120161175226292233154194
EPS in Rs1.661.872.744.295.014.996.697.079.1111.749.356.217.79
Dividend Payout %5%5%5%6%6%10%11%13%14%21%27%40%

Relaxo Footwears Ltd Profit & Loss Yearly Chart

Relaxo Footwears Ltd Growth

Compounded Sales Growth
10 Years:11%
5 Years:7%
3 Years:5%
TTM:8%
Compounded Profit Growth
10 Years:13%
5 Years:-1%
3 Years:-12%
TTM:31%
Stock Price CAGR
10 Years:29%
5 Years:18%
3 Years:-2%
1 Year:5%
Return on Equity
10 Years:18%
5 Years:15%
3 Years:14%
Last Year:9%

Relaxo Footwears Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital6666121212122525252525
Reserves1662082713624685947491,0931,2481,5481,7351,8301,873
Borrowings175225198239236178153112139144174164225
Other Liabilities127147182234281286335394430459448476501
Total Liabilities4755876578419971,0701,2501,6111,8412,1762,3832,4952,624
Fixed Assets2713273664725315415258489819389871,1501,211
CWIP2124242286213811461181498963
Investments000001100338194225182
Other Assets1822362673674384665877528147821,0521,0301,167
Total Assets4755876578419971,0701,2501,6111,8412,1762,3832,4952,624

Relaxo Footwears Ltd Reserves and Borrowings Chart

Relaxo Footwears Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 735412510715918015412331951356400
Cash from Investing Activity -47-82-70-130-130-89-108-56-116-45315-258
Cash from Financing Activity -2729-5121-31-89-46-68-203-56-70-138
Net Cash Flow-114-1-21-0-11413

Relaxo Footwears Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days101321212428333526283435
Inventory Days102124109163147146130130157154202154
Days Payable333539616363725865816769
Cash Conversion Cycle791029112310811090107119101170121
Working Capital Days183120313232435660498264
ROCE %22%22%26%30%30%26%30%26%24%26%18%12%

Relaxo Footwears Ltd Financial Efficiency Indicators Chart

Relaxo Footwears Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters70.92%70.92%70.92%70.92%70.78%70.78%70.78%70.78%71.02%71.25%71.27%71.27%
FIIs3.67%3.88%3.49%3.56%3.81%3.22%3.15%3.11%2.99%2.82%2.87%3.24%
DIIs7.04%7.00%7.34%7.17%7.08%6.94%7.07%7.43%7.64%7.96%8.34%8.53%
Public18.37%18.20%18.25%18.35%18.33%19.06%19.00%18.68%18.34%17.98%17.51%16.96%
No. of Shareholders1,12,0161,22,4481,55,2522,23,3932,60,5623,10,0793,28,9693,45,7413,61,9273,58,7003,43,2953,16,135

Relaxo Footwears Ltd Shareholding Pattern Chart

No. of Relaxo Footwears Ltd Shareholders

Relaxo Footwears Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Focused Equity Fund84307212.5767.24
SBI Equity Hybrid Fund25339880.38230.61
SBI Small Cap Fund18000000.72163.81
SBI Multicap Fund16217041.07147.58
UTI Flexi Cap Fund15756880.56143.4
SBI Flexi Cap Fund13470990.66122.59
SBI Large & Midcap Fund12959140.69117.93
SBI Magnum Midcap Fund6219120.3956.6
SBI Magnum Childrens Benefit Fund - Investment Plan4000002.6236.4
Sundaram Large and Mid Cap Fund3483990.5531.71

Relaxo Footwears Ltd ROCE Trend

Relaxo Footwears Ltd EPS Trend

Relaxo Footwears Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)6.219.3611.749.127.07
Diluted EPS (Rs.)6.219.3511.749.127.06
Cash EPS (Rs.)11.2313.9116.1713.5219.18
Book Value[Excl.RevalReserv]/Share (Rs.)74.5370.7263.3051.2789.12
Book Value[Incl.RevalReserv]/Share (Rs.)74.5370.7263.3051.2789.12
Dividend / Share (Rs.)2.502.502.501.250.90
Revenue From Operations / Share (Rs.)111.80106.6094.9797.12184.85
PBDIT / Share (Rs.)14.2417.6620.8616.8427.20
PBIT / Share (Rs.)9.2113.0916.4312.4322.17
PBT / Share (Rs.)8.4412.4815.7511.7521.61
Net Profit / Share (Rs.)6.219.3511.749.1214.15
PBDIT Margin (%)12.7316.5621.9617.3414.71
PBIT Margin (%)8.2312.2817.3012.8011.99
PBT Margin (%)7.5411.7016.5812.1011.69
Net Profit Margin (%)5.558.7612.359.387.65
Return on Networth / Equity (%)8.3213.2118.5417.7815.87
Return on Capital Employeed (%)11.3216.9623.6421.6123.93
Return On Assets (%)6.199.7613.4012.2810.88
Total Debt / Equity (X)0.000.010.000.010.07
Asset Turnover Ratio (%)1.141.161.171.401.60
Current Ratio (X)2.542.572.401.911.57
Quick Ratio (X)1.341.111.460.830.74
Inventory Turnover Ratio (X)1.912.391.992.242.62
Dividend Payout Ratio (NP) (%)40.2826.690.0023.5810.28
Dividend Payout Ratio (CP) (%)22.2517.930.0015.897.58
Earning Retention Ratio (%)59.7273.310.0076.4289.72
Cash Earning Retention Ratio (%)77.7582.070.0084.1192.42
Interest Coverage Ratio (X)18.4228.6730.3424.7848.88
Interest Coverage Ratio (Post Tax) (X)9.0316.1818.0714.4126.43
Enterprise Value (Cr.)21055.1126520.3321706.2014837.579694.08
EV / Net Operating Revenue (X)7.5710.009.206.164.23
EV / EBITDA (X)59.4260.3541.8835.5028.74
MarketCap / Net Operating Revenue (X)7.599.999.206.154.19
Retention Ratios (%)59.7173.300.0076.4189.71
Price / BV (X)11.3915.0613.8111.658.70
Price / Net Operating Revenue (X)7.599.999.206.154.19
EarningsYield0.010.010.010.010.01

Relaxo Footwears Ltd Profitability Ratios (%)

Relaxo Footwears Ltd Liquidity Ratios

Relaxo Footwears Ltd Liquidity Ratios (%)

Relaxo Footwears Ltd Interest Coverage Ratios (X)

Relaxo Footwears Ltd Valuation Ratios

Fair Value / Intrinsic Value of Relaxo Footwears Ltd

Fair Value: ₹680.94

The stock is overvalued by 18.65% compared to the current price ₹837

*Investments are subject to market risks

Strength and Weakness of Relaxo Footwears Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 24.33%, which is a positive sign.
  2. The company has higher reserves (934.23 cr) compared to borrowings (181.69 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (141.77 cr) and profit (207.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 19.36 and average Dividend Yield of 12.52%.
  2. The stock has a high average Working Capital Days of 43.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 110.08, which may not be favorable.

Should I Buy Relaxo Footwears Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Relaxo Footwears Ltd:
    1. Net Profit Margin: 5.55%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.32% (Industry Average ROCE: 11.29%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 9.03
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.34
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 103 (Industry average Stock P/E: 39.6)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Relaxo Footwears Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE