NSEI:RELAXO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

6.1%

RELAXO

3.3%

IN Luxury

3.9%

IN Market


1 Year Return

47.7%

RELAXO

12.9%

IN Luxury

6.0%

IN Market

Return vs Industry: RELAXO exceeded the Indian Luxury industry which returned 12.9% over the past year.

Return vs Market: RELAXO exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

RELAXOIndustryMarket
7 Day6.1%3.3%3.9%
30 Day13.1%8.0%7.8%
90 Day25.3%9.3%2.5%
1 Year48.0%47.7%13.8%12.9%8.2%6.0%
3 Year145.8%144.4%51.0%49.2%23.0%16.7%
5 Year327.8%324.4%108.3%104.5%43.5%30.0%

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?

73.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: RELAXO (₹528.45) is trading above our estimate of fair value (₹93.29)

Significantly Undervalued: RELAXO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RELAXO is poor value based on its PE Ratio (73.7x) compared to the Luxury industry average (10.2x).

PE vs Market: RELAXO is poor value based on its PE Ratio (73.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: RELAXO is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: RELAXO is overvalued based on its PB Ratio (11.9x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Relaxo Footwears forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RELAXO's forecast earnings growth (22.7% per year) is above the savings rate (7.6%).

Earnings vs Market: RELAXO's earnings (22.7% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RELAXO's revenue (15.6% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: RELAXO's revenue (15.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if RELAXO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Relaxo Footwears performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RELAXO's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: RELAXO's earnings growth over the past year (5.6%) is below its 5-year average (15.5% per year).

Earnings vs Industry: RELAXO earnings growth over the past year (5.6%) underperformed the Luxury industry 7.9%.


Return on Equity

High ROE: RELAXO's Return on Equity (16.2%) is considered low.


Return on Assets

ROA vs Industry: RELAXO has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: RELAXO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Relaxo Footwears's financial position?


Financial Position Analysis

Short Term Liabilities: RELAXO's short term assets (₹7.2B) exceeds its short term liabilities (₹4.6B)

Long Term Liabilities: RELAXO's short term assets (7.2B) exceeds its long term liabilities (434.5M)


Debt to Equity History and Analysis

Debt Level: RELAXO's debt to equity ratio (7.9%) is considered satisfactory

Reducing Debt: RELAXO's debt to equity ratio has reduced from 58.6% to 7.9% over the past 5 years.

Debt Coverage: RELAXO's debt is well covered by operating cash flow (142.1%).

Interest Coverage: RELAXO's interest payments on its debt are well covered by EBIT (28.4x coverage).


Balance Sheet

Inventory Level: RELAXO has a high level of physical assets or inventory.

Debt Coverage by Assets: RELAXO's debt is covered by short term assets (assets are 8.284740x debt).


Next Steps

Dividend

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

0.17%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.4%industryaverage0.6%forecastin3Years0.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RELAXO's dividend (0.17%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: RELAXO's dividend (0.17%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

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

Growing Dividend: RELAXO 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: RELAXO is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Relaxo Footwears's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Ramesh Dua (65yo)

5.5yrs

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 ($USD1.93M) is about average for companies of similar size in the Indian market ($USD621.42K).

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


Management Age and Tenure

5.5yrs

Average Tenure

57yo

Average Age

Experienced Management: RELAXO's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: RELAXO's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: RELAXO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹996,95525 Sep 19
Amit Roy
EntityIndividual
Shares2,000
Max Price₹507.32
Sell₹922,90904 Sep 19
Anil Arora
EntityIndividual
Shares2,000
Max Price₹461.45
Sell₹468,82004 Sep 19
Anil Arora
EntityIndividual
Shares1,000
Max Price₹468.82
Sell₹1,951,79902 Sep 19
Anil Arora
EntityIndividual
Shares4,500
Max Price₹442.73
Sell₹2,719,88902 Sep 19
Rajeev Bhatia
EntityIndividual
Shares6,000
Max Price₹458.55
Sell₹48,01829 Aug 19
Madhuri Shrimali
EntityIndividual
Shares106
Max Price₹453.00
Sell₹1,755,00129 Aug 19
Vinay Bajaj
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares4,000
Max Price₹455.00
Sell₹85,00026 Aug 19
Madhuri Shrimali
EntityIndividual
Shares200
Max Price₹425.00
Sell₹3,369,94723 Aug 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares7,956
Max Price₹423.57
Sell₹2,509,24321 Aug 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,930
Max Price₹423.14
Sell₹48,83820 Aug 19
Madhuri Shrimali
EntityIndividual
Shares116
Max Price₹421.02
Sell₹301,70020 Aug 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares710
Max Price₹424.93
Sell₹238,38216 Aug 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares554
Max Price₹430.29
Sell₹269,32416 Aug 19
Madhuri Shrimali
EntityIndividual
Shares626
Max Price₹430.23
Sell₹215,00013 Aug 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares500
Max Price₹430.00
Sell₹559,19313 Aug 19
Madhuri Shrimali
EntityIndividual
Shares1,300
Max Price₹430.15
Sell₹107,52008 Aug 19
Madhuri Shrimali
EntityIndividual
Shares248
Max Price₹433.55
Sell₹715,71606 Aug 19
Madhuri Shrimali
EntityIndividual
Shares1,616
Max Price₹442.89
Sell₹177,20306 Aug 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares400
Max Price₹443.01
Sell₹1,761,08203 Jul 19
Vinay Bajaj
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares4,120
Max Price₹427.50
Sell₹84,89017 Jun 19
Madhuri Shrimali
EntityIndividual
Shares200
Max Price₹424.45
Sell₹424,97011 Jun 19
Madhuri Shrimali
EntityIndividual
Shares1,000
Max Price₹424.97
Sell₹2,299,18311 Jun 19
Amit Maindola
EntityIndividual
Shares5,844
Max Price₹424.03
Sell₹264,17807 Jun 19
Madhuri Shrimali
EntityIndividual
Shares622
Max Price₹424.72
Sell₹53,54106 Jun 19
Madhuri Shrimali
EntityIndividual
Shares126
Max Price₹424.93
Sell₹17,00005 Jun 19
Madhuri Shrimali
EntityIndividual
Shares40
Max Price₹425.00
Sell₹84,99001 Jun 19
Madhuri Shrimali
EntityIndividual
Shares200
Max Price₹424.95
Sell₹1,155,63330 Mar 19
Sushil Batra
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,000
Max Price₹385.85
Sell₹2,281,49229 Mar 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,910
Max Price₹386.04
Sell₹1,381,24429 Mar 19
Rishi Nayyar
EntityIndividual
Shares3,620
Max Price₹385.69
Sell₹1,005,05929 Mar 19
Madhuri Shrimali
EntityIndividual
Shares2,602
Max Price₹386.26
Sell₹304,99028 Mar 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares800
Max Price₹381.24
Sell₹76,20026 Mar 19
Madhuri Shrimali
EntityIndividual
Shares200
Max Price₹381.00
Sell₹229,53126 Mar 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares608
Max Price₹377.52
Sell₹1,895,92720 Mar 19
Deepak Bagga
EntityIndividual
Shares5,000
Max Price₹390.24
Sell₹2,033,22020 Mar 19
Vinay Bajaj
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares5,360
Max Price₹386.00
Sell₹841,75020 Mar 19
Vinay Bajaj
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares2,200
Max Price₹384.00
Sell₹1,895,92720 Mar 19
Deepak Bagga
EntityIndividual
Shares5,000
Max Price₹390.24
Sell₹154,70016 Mar 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares400
Max Price₹386.75
Sell₹1,162,57407 Mar 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares3,000
Max Price₹387.52
Sell₹387,81107 Mar 19
Madhuri Shrimali
EntityIndividual
Shares1,000
Max Price₹387.81
Sell₹15,20006 Mar 19
Madhuri Shrimali
EntityIndividual
Shares40
Max Price₹380.00
Sell₹3,443,55126 Feb 19
Deval Ganguly
EntityIndividual
Role
Member of the Board of Directors
Whole-Time Director
Shares9,038
Max Price₹382.63
Sell₹1,510,07222 Feb 19
Madhuri Shrimali
EntityIndividual
Shares4,016
Max Price₹376.01
Sell₹75,48920 Feb 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares200
Max Price₹377.44
Sell₹441,13020 Feb 19
Madhuri Shrimali
EntityIndividual
Shares1,168
Max Price₹377.68
Sell₹169,87819 Feb 19
Madhuri Shrimali
EntityIndividual
Shares450
Max Price₹377.51
Sell₹19,15019 Feb 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50
Max Price₹383.00
Sell₹216,54215 Feb 19
Madhuri Shrimali
EntityIndividual
Shares570
Max Price₹381.89
Sell₹38,25015 Feb 19
Pankaj Shrimali
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100
Max Price₹382.50
Sell₹1,120,13513 Feb 19
Madhuri Shrimali
EntityIndividual
Shares2,962
Max Price₹378.17
Buy₹526,185,05712 Feb 19
Mukand Dua
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares2,130,520
Max Price₹246.97
Buy₹84,656,58912 Feb 19
Nitin Dua
EntityIndividual
Shares342,774
Max Price₹246.97
Buy₹84,656,58912 Feb 19
Ritesh Dua
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Finance
Shares342,774
Max Price₹246.97
Sell₹148,40012 Feb 19
Madhuri Shrimali
EntityIndividual
Shares400
Max Price₹373.45
Buy₹84,656,58912 Feb 19
Gaurav Dua
EntityIndividual
Shares342,774
Max Price₹246.97
Buy₹84,656,58912 Feb 19
Nikhil Dua
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares342,774
Max Price₹246.97
Buy₹724,354,29412 Feb 19
Ramesh Dua
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares2,932,906
Max Price₹246.97
Buy₹113,512,15412 Feb 19
Usha Dua
EntityIndividual
Shares459,610
Max Price₹246.97
Sell₹484,06511 Jan 19
Sushil Batra
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,280
Max Price₹380.10
Sell₹1,503,00308 Jan 19
Sushil Batra
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,000
Max Price₹379.00
Sell₹2,008,91204 Jan 19
Sushil Batra
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares5,400
Max Price₹373.32
Sell₹805,60002 Jan 19
Sushil Batra
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,200
Max Price₹366.18
Sell₹366,50027 Dec 18
Sushil Batra
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,000
Max Price₹366.50
Sell₹1,720,08124 Dec 18
Sushil Batra
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,660
Max Price₹369.12
Sell₹1,379,46204 Dec 18
Sanjeev Rawat
EntityIndividual
Shares3,600
Max Price₹383.18
Sell₹2,244,64826 Nov 18
Sandeep Singh
EntityIndividual
Shares5,800
Max Price₹389.19

Ownership Breakdown


Management Team

  • Ramesh Dua (65yo)

    MD & Director

    • Tenure: 5.5yrs
    • Compensation: ₹137.23m
  • Nikhil Dua (43yo)

    Whole Time Director

    • Tenure: 22.7yrs
    • Compensation: ₹10.10m
  • Sushil Batra (55yo)

    Chief Financial Officer

    • Tenure: 12.3yrs
  • Vikas Tak

    Company Secretary & Compliance Officer

    • Tenure: 4.4yrs
  • Deval Ganguly (60yo)

    Whole-Time Director

    • Tenure: 6.9yrs
    • Compensation: ₹11.48m
  • Ritesh Dua (41yo)

    Executive Vice President of Finance

    • Tenure: 0yrs
    • Compensation: ₹7.11m
  • Hans Sapra (70yo)

    Senior Vice President of Material

    • Tenure: 0yrs
  • Vinay Bajaj (57yo)

    Vice President of Sales

    • Tenure: 0yrs

Board Members

  • Pankaj Shrimali (57yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: ₹960.00k
  • Ramesh Dua (65yo)

    MD & Director

    • Tenure: 5.5yrs
    • Compensation: ₹137.23m
  • Mukand Dua (70yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹137.23m
  • Nikhil Dua (43yo)

    Whole Time Director

    • Tenure: 22.7yrs
    • Compensation: ₹10.10m
  • Vivek Kumar (63yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: ₹700.00k
  • Deval Ganguly (60yo)

    Whole-Time Director

    • Tenure: 6.9yrs
    • Compensation: ₹11.48m
  • Deepa Verma (59yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: ₹600.00k
  • Rajeev Bhadauria (59yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs

Company Information

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


Key Information

  • Name: Relaxo Footwears Limited
  • Ticker: RELAXO
  • Exchange: NSEI
  • Founded: 1976
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: ₹131.271b
  • Shares outstanding: 248.10m
  • 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 D ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:58
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.