Relaxo Footwears Ltd
Footwear
FV – Rs 1; 52wks H/L –614.55/360; TTQ – 2 K; CMP – Rs 460 (As On May 24 2016; 11:30) ;
Market Cap – Rs 5521 Crs
Standalone Financials and Valuations for Q4 FY16 (Amt in Rs.Crs unless specified)
Equity Capital |
Net worth |
Long Term Debt | Total Sales |
PAT | BV (Rs) |
TTM EPS (Rs) |
TTM P/E |
Industry P/E |
P/BV |
Promoter’s Stake |
Beta |
| 12 | 480 | 113 | 485 | 32.82 | 40 | 2.74 | 167.8 | 21.14 | 11.5 | 74.98 | 1.03 |
Standalone Financials and Valuations for FY16 (Amt in Rs Crs unless specified)
Equity Capital |
Net worth |
Long Term Debt | Total Sales |
PAT | BV (Rs) |
EPS (Rs) |
P/E |
P/BV |
Beta |
| 12 | 480 | 113 | 1713 | 120.28 | 40 | 10.02 | 45.9 | 11.5 | 1.03 |
In 2013 there was a stock split from Rs.5 to Rs.1 and on 1/7/2015 the company issues bonus of 1:1 shares held on a face value of Rs.1 each.
The company added 8 stores in Q4 FY16 with a total of 250 retail stores as of 31/3/2016.
The company is aiming for a double-digit growth in the next quarter, with focus on sales transformation and better connection with retailers. http://www.moneycontrol.com/news/results-boardroom/aiming-for-double-digit-growthnext-quarter-relaxo-footwear_6687881.html
On Monday, April 4, 2016, Jwalamukhi Investment Holdings, a unit of WestBridge, purchased 1.87 million equity shares representing 1.55% of total equity of Relaxo Footwears for about Rs 80 crore through block deal on NSE. http://www.business-standard.com/article/markets/footwear-stocks-extend-rally-relaxo-footwear-surges-over-30-in-two-days-116040500196_1.html
VLS Finance sold 1.77 million shares at Rs 425 per share, data shows. VLS Finance (6.71%) and VLS Securities (6.79%) collectively held 13.5% stake in Relaxo Footwears at the end of December 2015 quarter.
This quarter was subdued mainly due to general market slowdown and wage hike in Haryana and statutory bonus ceiling impacted the bottom line. The employee benefit cost rose up by 19.6% at Rs.45.7 Crs.
The company introduced approximately 200 designs last year, spread across categories and brands.
As on 31st March, 2015 the total no of employees of the Company are 4655 against 3980 on 31st March, 2014.
Overview:
- Relaxo Footwears Ltd is engaged in the business of manufacturing and trading footwear and articles.
- The company’s brands include Hawaii, Flite, Sparx, Schoolmate, Elena and Casualz.
- Its sparx range includes sports shoes, Sandals and SFGs range.
- Its Schoolmate brand consists of a range of school shoes for boys and girls. Its Hawaii brand provides slipper.
- Its Flite brand provides women’s footwear.
- Its manufacturing facilities are located at Bahadurgarh, Haryana; Bhiwadi; Rajasthan, and Haridwar, Uttarakhand.
| Particulars | 2014-15 | 2013-14 | 2012-13 | 2011-12 | 2010-11 |
| No. of pairs sold (in Crs) | 12.28 | 10.78 | 10.02 | 9.25 | 8.66 |
| YOY growth (%) | 13.9 | 7.6 | 8.3 | 6.8 |
Industry Updates:
95% of the footwear industry in India is driven by domestic sales with approximately 5 % coming from exports.
India is a big market with a lot of potential with a focus for growth. However, the company plans to be relevant in international markets by building their own brand.
Management:
- Ramesh Dua is the Managing Director of the company.
- Susuhil Batra is the CFO of the company.
Major Non-Promoter Holdings:
| Non – Promoters | No. of shares held | % of shares held |
| SBI Magnum Global Fund | 1700000 | 1.42 |
| Kotak Mahindra (International) Ltd | 1670466 | 1.39 |
| VLS Finance Ltd | 8057760 | 6.71 |
| VLS Securities Ltd | 8150000 | 6.79 |
Standalone Financial Trends (In Rs.Crs):
| Particulars | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
| Equity Paid Up | 12 | 6 | 6 | 6 | 6 | 6 |
| Networth | 480 | 368 | 277 | 214 | 172 | 135 |
| Total Debt | 203 | 211 | 162 | 205 | 146 | 156 |
| Net Sales | 1713 | 1481 | 1215 | 1011 | 866 | 692 |
| Other Income | 9 | 0.4 | 2 | 1 | 1 | 0.5 |
| PAT | 120.28 | 103.05 | 65.64 | 44.81 | 39.91 | 26.79 |
| Book Value (Rs) | 40 | 61 | 46 | 36 | 29 | 23 |
| EPS (Rs) | 10.02 | 17.18 | 10.94 | 7.47 | 6.65 | 4.47 |