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Last Updated on: 13 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Relaxo Footwears Ltd

Basic Stock Data

Last Updated: June 12, 2024, 12:52 pm

Market Cap 20,650 Cr.
Current Price 830
High / Low974/758
Stock P/E103
Book Value 80.4
Dividend Yield0.30 %
ROCE13.6 %
ROE10.4 %
Face Value 1.00
PEG Ratio-42.15

Competitors of Relaxo Footwears Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sreeleathers Ltd – a Premier Leather Goods Manufacturer 644 Cr. 278436/18824.0 1800.00 %9.29 %6.80 % 10.0
Amin Tannery Ltd 26.2 Cr. 2.433.09/1.9372.9 1.160.00 %5.03 %2.92 % 1.00
Mayur Uniquoters Ltd 2,674 Cr. 608632/45422.3 1970.33 %18.9 %14.7 % 5.00
Superhouse Ltd 240 Cr. 218275/19019.2 4150.47 %4.66 %2.79 % 10.0
Anka India Ltd 11.7 Cr. 13.420.5/0.00 0.560.00 %%% 10.0
Industry Average719.18 Cr223.9727.68158.740.16%7.58%5.44%7.20

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales748497714744698667670681765739715713747
Expenses585431598622587581610609647631624626627
Operating Profit163661171221118659721181089287120
OPM %22%13%16%16%16%13%9%11%15%15%13%12%16%
Other Income75756464471165
Interest5444474444555
Depreciation27272829293031323335373838
Profit before tax138409294845430418576605182
Tax %26%23%25%25%25%28%26%26%26%26%27%24%25%
Net Profit102316970633922306356443961
EPS in Rs4.111.252.762.822.531.550.901.212.542.261.781.552.47

Last Updated: June 9, 2024, 6:54 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 1:15 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales9811,1801,4411,6681,6311,9412,2922,4102,3592,6532,7832,914
Expenses8711,0321,2401,4271,4001,6391,9641,9981,8612,2352,4422,507
Operating Profit110148201241231302328413498418341407
OPM %11%13%14%14%14%16%14%17%21%16%12%14%
Other Income120714412822231629
Interest1823182315991919172219
Depreciation26314047515462109110114125147
Profit before tax6896143178178244268292391311210269
Tax %34%31%28%32%33%34%35%22%25%25%26%26%
Net Profit4566103120120161175226292233154200
EPS in Rs1.872.744.295.014.996.697.079.1111.749.356.218.05
Dividend Payout %5%5%6%6%10%11%13%14%21%27%40%37%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)46.67%56.06%16.50%0.00%34.17%8.70%29.14%29.20%-20.21%-33.91%29.87%
Change in YoY Net Profit Growth (%)0.00%9.39%-39.56%-16.50%34.17%-25.47%20.45%0.06%-49.41%-13.70%63.78%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:5%
3 Years:7%
TTM:5%
Compounded Profit Growth
10 Years:12%
5 Years:3%
3 Years:-11%
TTM:28%
Stock Price CAGR
10 Years:24%
5 Years:14%
3 Years:-9%
1 Year:-8%
Return on Equity
10 Years:16%
5 Years:14%
3 Years:11%
Last Year:10%

Last Updated: June 8, 2024, 5:29 pm

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-115.00-50.00-38.005.0053.00149.00216.00274.00354.00244.00177.00202.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters70.92%70.92%70.78%70.78%70.78%70.78%71.02%71.25%71.27%71.27%71.27%71.27%
FIIs3.49%3.56%3.81%3.22%3.15%3.11%2.99%2.82%2.87%3.24%3.39%3.32%
DIIs7.34%7.17%7.08%6.94%7.07%7.43%7.64%7.96%8.34%8.53%8.86%9.33%
Public18.25%18.35%18.33%19.06%19.00%18.68%18.34%17.98%17.51%16.96%16.47%16.07%
No. of Shareholders1,55,2522,23,3932,60,5623,10,0793,28,9693,45,7413,61,9273,58,7003,43,2953,16,1352,91,4012,69,388

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Focused Equity Fund8,430,7212.5767.24400,0002024-06-112007.68%
SBI Equity Hybrid Fund2,533,9880.38230.61400,0002024-06-11533.5%
SBI Small Cap Fund1,800,0000.72163.81400,0002024-06-11350%
SBI Multicap Fund1,621,7041.07147.58400,0002024-06-11305.43%
UTI Flexi Cap Fund1,575,6880.56143.4400,0002024-06-11293.92%
SBI Flexi Cap Fund1,347,0990.66122.59400,0002024-06-11236.77%
SBI Large & Midcap Fund1,295,9140.69117.93400,0002024-06-11223.98%
SBI Magnum Midcap Fund621,9120.3956.6400,0002024-06-1155.48%
SBI Magnum Childrens Benefit Fund - Investment Plan400,0002.6236.4400,0002024-06-110%
Sundaram Large and Mid Cap Fund348,3990.5531.71400,0002024-06-11-12.9%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)8.056.219.3611.749.12
Diluted EPS (Rs.)8.056.219.3511.749.12
Cash EPS (Rs.)13.9811.2313.9116.1713.52
Book Value[Excl.RevalReserv]/Share (Rs.)80.4074.5370.7263.3051.27
Book Value[Incl.RevalReserv]/Share (Rs.)80.4074.5370.7263.3051.27
Dividend / Share (Rs.)3.002.502.502.501.25
Revenue From Operations / Share (Rs.)117.08111.80106.6094.9797.12
PBDIT / Share (Rs.)17.4914.2417.6620.8616.84
PBIT / Share (Rs.)11.579.2113.0916.4312.43
PBT / Share (Rs.)10.828.4412.4815.7511.75
Net Profit / Share (Rs.)8.056.219.3511.749.12
PBDIT Margin (%)14.9412.7316.5621.9617.34
PBIT Margin (%)9.888.2312.2817.3012.80
PBT Margin (%)9.247.5411.7016.5812.10
Net Profit Margin (%)6.875.558.7612.359.38
Return on Networth / Equity (%)10.018.3213.2118.5417.78
Return on Capital Employeed (%)13.1211.3216.9623.6421.61
Return On Assets (%)7.386.199.7613.4012.28
Total Debt / Equity (X)0.010.000.010.000.01
Asset Turnover Ratio (%)1.121.141.161.171.40
Current Ratio (X)2.402.542.572.401.91
Quick Ratio (X)1.251.341.111.460.83
Inventory Turnover Ratio (X)1.991.912.391.992.24
Dividend Payout Ratio (NP) (%)0.0040.2826.690.0023.58
Dividend Payout Ratio (CP) (%)0.0022.2517.930.0015.89
Earning Retention Ratio (%)0.0059.7273.310.0076.42
Cash Earning Retention Ratio (%)0.0077.7582.070.0084.11
Interest Coverage Ratio (X)23.3018.4228.6730.3424.78
Interest Coverage Ratio (Post Tax) (X)11.739.0316.1818.0714.41
Enterprise Value (Cr.)20231.0821055.1126520.3321706.2014837.57
EV / Net Operating Revenue (X)6.947.5710.009.206.16
EV / EBITDA (X)46.4659.4260.3541.8835.50
MarketCap / Net Operating Revenue (X)6.977.599.999.206.15
Retention Ratios (%)0.0059.7173.300.0076.41
Price / BV (X)10.1511.3915.0613.8111.65
Price / Net Operating Revenue (X)6.977.599.999.206.15
EarningsYield0.010.010.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 863.83

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 4.08% compared to the current price 830

Intrinsic Value: 842.72

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 1.53% compared to the current price ₹830

Last 5 Year EPS CAGR: -2.44%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.33%, which is a positive sign.
  2. The company has higher reserves (1,006.83 cr) compared to borrowings (180.58 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (83.17 cr) and profit (220.67 cr) over the years.
  1. The stock has a high average Working Capital Days of 43.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 110.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Relaxo Footwears Ltd:
    1. Net Profit Margin: 6.87%
      • 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: 13.12% (Industry Average ROCE: 7.58%)
      • 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. ROE%: 10.01% (Industry Average ROE: 5.44%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 11.73
      • 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.
    5. Quick Ratio: 1.25
      • 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.
    6. ✗ Stock P/E: 103 (Industry average Stock P/E: 27.68)
      • 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.
    7. Total Debt / Equity: 0.01
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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
FootwearsAggarwal 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

FAQ

What is the latest fair value of Relaxo Footwears Ltd?

The latest fair value of Relaxo Footwears Ltd is ₹863.83.

What is the Market Cap of Relaxo Footwears Ltd?

The Market Cap of Relaxo Footwears Ltd is 20,650 Cr..

What is the current Stock Price of Relaxo Footwears Ltd as on 13 June 2024?

The current stock price of Relaxo Footwears Ltd as on 13 June 2024 is ₹830.

What is the High / Low of Relaxo Footwears Ltd stocks in FY 2024?

In FY 2024, the High / Low of Relaxo Footwears Ltd stocks is 974/758.

What is the Stock P/E of Relaxo Footwears Ltd?

The Stock P/E of Relaxo Footwears Ltd is 103.

What is the Book Value of Relaxo Footwears Ltd?

The Book Value of Relaxo Footwears Ltd is 80.4.

What is the Dividend Yield of Relaxo Footwears Ltd?

The Dividend Yield of Relaxo Footwears Ltd is 0.30 %.

What is the ROCE of Relaxo Footwears Ltd?

The ROCE of Relaxo Footwears Ltd is 13.6 %.

What is the ROE of Relaxo Footwears Ltd?

The ROE of Relaxo Footwears Ltd is 10.4 %.

What is the Face Value of Relaxo Footwears Ltd?

The Face Value of Relaxo Footwears Ltd is 1.00.

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