BSE:530517

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Relaxo Footwears Limited manufactures and sells footwear for men, women, and children worldwide.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Relaxo Footwears's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 530517's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.3%

530517

8.7%

IN Luxury

6.2%

IN Market


1 Year Return

66.5%

530517

-24.0%

IN Luxury

-19.9%

IN Market

Return vs Industry: 530517 exceeded the Indian Luxury industry which returned -26.3% over the past year.

Return vs Market: 530517 exceeded the Indian Market which returned -20.6% over the past year.


Shareholder returns

530517IndustryMarket
7 Day8.3%8.7%6.2%
30 Day12.1%0.08%-0.3%
90 Day2.1%-23.1%-13.4%
1 Year67.2%66.5%-23.4%-24.0%-18.3%-19.9%
3 Year191.8%189.7%-3.5%-5.7%-8.2%-13.1%
5 Year240.0%236.7%41.4%38.4%16.4%5.5%

Price Volatility Vs. Market

How volatile is Relaxo Footwears's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Relaxo Footwears undervalued compared to its fair value and its price relative to the market?

77.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 530517 (₹711.55) is trading above our estimate of fair value (₹26.33)

Significantly Below Fair Value: 530517 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 530517 is poor value based on its PE Ratio (77.1x) compared to the Luxury industry average (7.9x).

PE vs Market: 530517 is poor value based on its PE Ratio (77.1x) compared to the Indian market (10x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 530517's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530517 is overvalued based on its PB Ratio (14.7x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

How is Relaxo Footwears forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.8%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Relaxo Footwears has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Relaxo Footwears performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530517 has high quality earnings.

Growing Profit Margin: 530517's current net profit margins (9.1%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 530517's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: 530517's earnings growth over the past year (31.2%) exceeds its 5-year average (15.1% per year).

Earnings vs Industry: 530517 earnings growth over the past year (31.2%) exceeded the Luxury industry 7.2%.


Return on Equity

High ROE: 530517's Return on Equity (19.1%) is considered low.


Next Steps

Financial Health

How is Relaxo Footwears's financial position?


Financial Position Analysis

Short Term Liabilities: 530517's short term assets (₹7.5B) exceed its short term liabilities (₹4.4B).

Long Term Liabilities: 530517's short term assets (₹7.5B) exceed its long term liabilities (₹1.6B).


Debt to Equity History and Analysis

Debt Level: 530517's debt to equity ratio (6%) is considered satisfactory.

Reducing Debt: 530517's debt to equity ratio has reduced from 43.6% to 6% over the past 5 years.

Debt Coverage: 530517's debt is well covered by operating cash flow (233.1%).

Interest Coverage: 530517's interest payments on its debt are well covered by EBIT (23.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Relaxo Footwears's current dividend yield, its reliability and sustainability?

0.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 530517's dividend (0.18%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.84%).

High Dividend: 530517's dividend (0.18%) is low compared to the top 25% of dividend payers in the Indian market (3.55%).


Stability and Growth of Payments

Stable Dividend: 530517 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 530517 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 530517 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 530517's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Ramesh Dua (65yo)

6.17yrs

Tenure

₹137,230,000

Compensation

Mr. Ramesh Kumar Dua serves as the Managing Director of Relaxo Footwears Limited since April 1, 2014 and serves as its Director. Mr. Dua serves as Director of Relaxo Rubber Private Limited, Marvel Polymers ...


CEO Compensation Analysis

Compensation vs Market: Ramesh's total compensation ($USD1.81M) is above average for companies of similar size in the Indian market ($USD647.38K).

Compensation vs Earnings: Ramesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ramesh Dua
MD & Director6.17yrs₹137.23m27.96% 46.9b
Sushil Batra
Chief Financial Officer12.92yrsno data0.027% 44.9m
Vinay Bajaj
Vice President of Salesno datano data0.0015% 2.6m
Nikhil Dua
Whole Time Director23.33yrs₹10.10m3.76% 6.3b
Deval Ganguly
Whole-Time Director7.58yrs₹11.48m0.0018% 3.1m
Hans Sapra
Senior Vice President of Materialno datano data0.020% 32.8m
Vikas Tak
Company Secretary & Compliance Officer5.08yrsno data0.00036% 604.1k
Ritesh Dua
Executive Vice President of Financeno data₹7.11m3.76% 6.3b

6.2yrs

Average Tenure

57yo

Average Age

Experienced Management: 530517's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ramesh Dua
MD & Director6.17yrs₹137.23m27.96% 46.9b
Nikhil Dua
Whole Time Director23.33yrs₹10.10m3.76% 6.3b
Deval Ganguly
Whole-Time Director7.58yrs₹11.48m0.0018% 3.1m
Pankaj Shrimali
Independent Non-Executive Director10.08yrs₹960.00k0.0065% 10.9m
Mukand Dua
Executive Chairmanno data₹137.23m20.39% 34.2b
Vivek Kumar
Independent Non-Executive Director13.42yrs₹700.00kno data
Deepa Verma
Independent Non-Executive Director6.42yrs₹600.00kno data
Rajeev Bhadauria
Independent Non-Executive Director0.83yrno datano data

8.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 530517's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Relaxo Footwears Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Relaxo Footwears Limited
  • Ticker: 530517
  • Exchange: BSE
  • Founded: 1976
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: ₹167.802b
  • Shares outstanding: 248.25m
  • Website: https://www.relaxofootwear.com

Number of Employees


Location

  • Relaxo Footwears Limited
  • Aggarwal City Square
  • Plot No. 10
  • New Delhi
  • Delhi
  • 110085
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530517BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1998
RELAXONSEI (National Stock Exchange of India)YesEquity SharesININRAug 1998

Biography

Relaxo Footwears Limited manufactures and sells footwear for men, women, and children worldwide. It offers footwear, which includes slippers, canvas shoes, rubber flip flops, EVA injected flip flops, PVC DIP shoes, sport shoes, sandals, and PVC DIP casuals. The company operates a portfolio of brands, such as Relaxo, Bahamas, Flite, Sparx, and Schoolmate. It sells its products through distributors and retail stores. The company also exports its products. Relaxo Footwears Limited was founded in 1976 and is headquartered in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 12:46
End of Day Share Price2020/06/01 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.