Relaxo Footwears Ltd (RELAXO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Campus Activewe.

Sreeleathers

Redtape

Lehar Footwears

Metro Brands

Relaxo Footwear

Bata India

Liberty Shoes

KSR Footwear

Khadim India

Why is Relaxo Footwears Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -10.87% of over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 10.78%
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 24.19 cr

With ROE of 8.1, it has a Expensive valuation with a 3.9 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.07%, its profits have risen by 5.3% ; the PEG ratio of the company is 9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.07% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Relaxo Footwear for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Relaxo Footwear

-21.07%

-0.54

39.00%

Sensex

-7.55%

-0.58

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.75%

EBIT Growth (5y)

-10.87%

EBIT to Interest (avg)

13.08

Debt to EBITDA (avg)

0.50

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

1.31

Tax Ratio

25.76%

Dividend Payout Ratio

37.25%

Pledged Shares

Institutional Holding

12.78%

ROCE (avg)

13.82%

ROE (avg)

9.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.85

EV to EBIT

39.32

EV to EBITDA

22.79

EV to Capital Employed

3.83

EV to Sales

3.15

PEG Ratio

9.04

Dividend Yield

0.88%

ROCE (Latest)

9.74%

ROE (Latest)

8.13%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

NET SALES(Q)

Highest at Rs 751.10 cr

PBDIT(Q)

Highest at Rs 123.98 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 16.51%

PBT LESS OI(Q)

Highest at Rs 79.12 cr.

PAT(Q)

Highest at Rs 67.67 cr.

EPS(Q)

Highest at Rs 2.72

-3What is not working for the Company

ROCE(HY)

Lowest at 10.78%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 24.19 cr

Loading Valuation Snapshot...

Here's what is working for Relaxo Footwear

Net Sales - Quarterly

Highest at Rs 751.10 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 123.98 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 16.51%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 79.12 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 67.67 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 67.67 cr has Grown at 20.4%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 2.72

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Relaxo Footwear

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 24.19 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents