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Stock_____
TALES
March 13, 2020
ICIC
I S
ecurit
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Retail E
quit
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esearch
Stock T
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March 13, 2020
CMP: | 660 Target: | 775 ( 17%) Target Period: 12 months
months
Relaxo Footwears (RELFOO)
BUY
On a sustainable growth path…
Incorporated in 1984, Relaxo is India’s leading footwear manufacturing
company (non-leather), boasting of largest capacity of 7.5 lakh pairs per day.
Over the years, Relaxo has consistently posted a superior performance,
depicting the fundamental strength of the company. While volumes have
trebled over the last decade (10 year CAGR: 10%), transformation from
being a basic hawai slipper company to a conglomerate of higher value
added product categories has led average realisation to double to | 125/
piece (10 year CAGR: 7.0%). Despite selling ~18.0 crore pairs annually,
Relaxo has mere 8% market share in fragmented footwear industry. Dual
strengths of strong manufacturing capability & robust distribution network,
has led Relaxo to consistently outperform peers and gain market share. We
expect volume growth momentum to come down to certain extent (owing
to high base effect) but still grow at a steady 8% CAGR in FY19-22E.
However, sustained improvement in product portfolio is expected to drive
realisation, revenue growth.
Sparx…game changer for Relaxo
Transition from a basic footwear manufacture (rubber slippers) to affordable
premium sports shoes has yielded positive results for Relaxo. Premium
affordable brands such as ‘Sparx’, ‘Flite’ and ‘Bahamas’ have been
instrumental in nudging realisation and profitable growth over the years.
Launched in 2005, brand ‘Sparx’ (ASP: | 300-1500) has been one of the
fastest growing brands with contribution of ~35% to overall revenues
(volume contribution: ~15%). The brand focuses on casual and sports
footwear category. In FY11, the company enhanced the value proposition of
its semi-formal brand ‘Flite’ through launch of PU-technology based
footwear (PU fetches better realisation vs. EVA). On the volume front, hawai
products still dominate the product mix with share of ~45%. Going forward,
with increase in share of value added products, we build in realisation
growth of 6% in FY19-22E.
Stepping up presence in west & south regions…
Relaxo has, over the years, established a healthy distribution network, with
650+ distributors catering to ~50000 retailers. While the north region
remains the main fortress for the company (50% of revenues), west and
south remain relatively underpenetrated markets. The company has put a
differential focus on market penetration in the west and south regions
through appointment of new distributors and dealers. On a low base, the
south market is growing at the fastest rate with the Sparx brand witnessing
significant traction in the region. Relaxo has promptly de-risked its business
model with a well-diversified distribution strategy. Modern formats (e-
commerce, LFS and exclusive store) now contribute ~20% of revenues. In
the last five years, volumes have grown at a CAGR of 12% to 18.4 crore
pairs. We expect volume to grow at a CAGR of 8% in FY19-22E.
Valuation & Outlook
Relaxo has a capital efficient business model, generating healthy asset turns
of 3.0x and EBITDA margins of 15%. Stringent control in NWC (60 days) has
led to average CFO/EBITDA at 55%. Subsequently, D/E ratio fell from 1.0x in
FY13 to 0.1x in FY19, with RoCE of 20%+. We expect Relaxo to be the
beneficiary of market share gains through a shift from unorganised to
organised players. We expect earnings to sustain healthy momentum & post
28% CAGR in FY19-22E. Healthy performance in a challenging scenario
instils confidence in the business model, which would enable the company
to command premium valuation multiple on a sustainable basis. We have a
BUY rating on the stock with a target price of | 775 (52x FY22E EPS).
Particulars
Particulars Amount
Market Capitalisation (| crore) 16,374.6
Total Debt (FY19) (| crore) 86.9
Cash (FY19) (| crore) 2.2
EV (| crore) 16,459.3
52 Week H / L 830 /357
Equity Capital (| crore) 24.8
Face Value (|) 1.0
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Relaxo NIFTY
Research Analyst
Bharat Chhoda
Cheragh Sidhwa
ICICI Securities | Retail Research 2
ICICI Direct Research Stock Tales | Relaxo Footwears
Company Background
Incorporated in 1984, Relaxo Footwears is one of the India’s largest footwear
company headquartered in Delhi. The company has established eight state-
of-the-art manufacturing facilities, with a capacity of manufacturing 750000
pairs of footwear per day (~19.5 crore pairs per year). Relaxo has a strong
presence in low priced footwear segment with more than 70% of sales under
the | 500 category. The product portfolio consist of only non-leather items
with EVA, PU and rubber being the key raw materials. It has a well spread
out distribution network consisting of 50000+ retailers and 385 company
owned-company controlled (COCO) stores. Geographically, it has a stronger
presence in Northern India contributing 50% of revenues, followed by east
(20% of revenues) and west and south regions together contributing 15% of
revenues. Apart from its flagship brand ’Relaxo’, the company, through
continuous investments in brand building activities, has successfully
established leading sub-brands such as ‘Sparx’, ‘Flite’ and ‘Bahamas’.
Exhibit 1: Portfolio of major brands
Fashionable & lightweight
footwear; Launched in
2005 (EVA), introduced
PU variant in 2012
Premium range of sports
shoes and sandals; Launched
in 2005
Flagship brand selling hawai
slippers (rubber); constitutes
major chunk of volumes
Launched in FY15, the brand
offers trendy and fashionable
hawai slippers
Range of school shoes for
boys and girls
Source: Company, ICICI Direct Research
As per industry reports, the Indian footwear industry is pegged at ~ | 63500
crore, which is expected to grow at CAGR of 12.0% to ~| 90000 crore by
2021. Out of the total footwear industry, the unbranded market accounts for
~55% of revenue while branded constitutes ~45% of the total footwear
industry. Of the overall footwear industry, 50% is dominated by the mass
segment (MRP< | 500), followed by 30% in the economy segment (MRP: |
500-1000). Relaxo Footwears predominantly caters to these two markets. To
differentiate itself from a plethora of mass unorganised players, branding
has become a critical aspect of Relaxo’s marketing strategy over the years.
Exhibit 2: Consistently invested in advertisement spends
29.62
55.08
47.27
53.37
66.1269.48
73.9376.76
3.4
5.5
3.93.6
3.94.3
3.8 3.3
0.0
1.0
2.0
3.0
4.0
5.0
6.0
0
10
20
30
40
50
60
70
80
90
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
%
| crore
Ad expenses % to sales
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 3
ICICI Direct Research Stock Tales | Relaxo Footwears
Investment Rationale
Strong manufacturing backbone provides competitive edge
From a small base of a capacity of 2.9 lakh pieces per day, Relaxo has
increased the capacity of manufacturing footwear to 7.5 lakh pairs per day
as on FY19. It has eight state-of-the art manufacturing facilities. Six are in
Bahadurgarh (Haryana) and one each in Bhiwadi (Rajasthan) and Haridwar
(Uttaranchal). In tandem with the increasing demand, the capacity has
grown at a CAGR of 10% in FY09-19. The company operates at a utilisation
rate of 70% and touches 90% during peak demand. In-house manufacturing
facility assists in maintaining quality and pricing products competitively. To
be ready for future growth, Relaxo is adding capacity of additional 1.0 lakh
pairs per day in the Bhiwadi plant within the next three years. The capex for
the same is estimated at | 90 crore, which will be funded through internal
accruals.
Exhibit 3: Daily capacity and utilisation rate
0%
20%
40%
60%
80%
100%
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Pairs in lakh
Daily Capacity Util isation rate
Source: Company, ICICI Direct Research
Over the years, the company has focused on enhancing its manufacturing
operations through various initiatives such as;
introducing a dedicated line for manufacturing fast moving SKUs
implementing lean manufacturing techniques in a bid to minimise
wastages without compromising on productivity
implementing Maynard Operation Sequence Technique (MOST)
In-house manufacturing ensures maintenance of product quality with
competitive pricing. Sustained focus on optimisation of operations and
steady capacity utilisation rate has translated into healthy gross margins and
fixed asset T/O for Relaxo over the years.
Exhibit 4: EBITDA per pair
9.6
8.3
10.2
11.0
13.6
16.3
17.817.1
19.2
17.6
5.0
7.0
9.0
11.0
13.0
15.0
17.0
19.0
21.0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
|
Source: Company, ICICI Direct Research
Exhibit 5: Gross block A/TO
2.29 2.252.35
2.26
2.48
3.12
3.48
2.44
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
(x
)
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 4
ICICI Direct Research
Stock Tales | Relaxo Footwears
Broadening distribution channel, enhancing pan-India footprint
Relaxo has, over the years, built a robust distribution network on a pan-India
basis. The products are retailed in over 50000+ touch points through
network of 650+ distributors. The company has maintained a strong
relationship with distributors through end-to-end distributor programmes
and consistent improvement of engagement levels. Relaxo has promptly de-
risked its business model with a well-diversified distribution strategy. The
distribution network comprises of multi brand outlets (MBOs), exclusive
Relaxo brand outlets (EBOs), large format stores (LFS) and e-commerce.
Exhibit 6: Revenue mix based on distribution mode
80%
7%
5%
5%3%
MBO
EBO
LFS
E-commerce
Exports
Source: Company, ICICI Direct Research
While the north region remains the main fortress for the company, west and
south remain relatively underpenetrated markets. Relaxo has over the years
made sturdy inroads to fortify its presence across regions through its
portfolio of brands. For instance, the Sparx brand has gained significant
traction in the south and west region in a quick span of time, while Flite and
Relaxo have a much stronger presence in the north and east. The company
has geo-tagged ~75000 outlets, which signifies an immense opportunity to
penetrate new territories through appointing new distributors and dealers.
Apart from its wholesale distribution model, Relaxo has cautiously added
exclusive stores over the decade. From opening its maiden store in FY05,
the company now has 385 stores as on 9MFY20, encompassing mainly non-
metro cities. Exclusive stores assist Relaxo in showcasing its entire product
range and brand portfolio. Furthermore, exclusive stores could act as a key
catalyst to enhance brand visibility and increase the share of premium
affordable SKUs in the product mix. Opening stores through franchise route
(currently eight) may perk up store addition pace, going ahead.
Exhibit 7: North dominates revenue
50
20
15 15
0
10
20
30
40
50
60
North East South West
%
Fastest growing regions
for Relaxo
Source: Company, ICICI Direct Research
Exhibit 8: Number of stores and annual addition
127149
168 179207
250270
302
343
385
27
2219
11
28
43
20
32
41 42
0
10
20
30
40
50
0
50
100
150
200
250
300
350
400
450
Stores addition
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 5
ICICI Direct Research
Stock Tales | Relaxo Footwears
Focus on enhancing share of premium products…
Relaxo has displayed a consistent track record of achieving 15%+ topline
growth since FY06 (except for FY17 owing to demonetisation disruption)
with a healthy mix of volume growth and premiumisation. Over the years,
the company has outperformed peers (market share gains) through its
strong brand patronage and efficient supply chain management. While
hawai rubber slippers have translated to a healthy volume trajectory (higher
inventory turns), upgradation of product portfolio (shoes and sandals) and a
gradual price hike have led to an increase in blended realisations.
Launched in 2005, brand ‘Sparx’ (ASP: | 300-1500) has been one of the
fastest growing brands with contribution of ~35% to overall revenues
(volume contribution: ~15%). The brand caters to premium range of sports
shoes and sandals. Sustained investments in marketing spending
(appointing Bollywood brand ambassadors) has enhanced visibility and
perked volume growth for the brand. In FY11, the company introduced a
premium variant of ‘Flite’ brand (initially sold EVA variant) by setting up
incremental capacity of 50000 pairs/day in Haryana to produce PU based
high fashion footwear. The same has led to premiumisation within segments
(price range PU: | 200-300 vs. EVA: | 110-250). Similarly, in hawai rubber
slippers, the company in FY15 launched the brand, ‘Bahamas’ to cater to
trendy flip flop collection (ASP: | 130-230 vs. | 75-150 of Relax hawai). A
sustained improvement in product mix, coupled with a gradual price hike on
certain product lines (to negate the impact of recent custom duty hike) would
assist realisation growth, going forward.
We build in 6% realisation growth with ASP increasing to | 148/pair by
FY22E. Establishing exclusive stores and sales through e-commerce has
been instrumental in nudging sales of higher ASP SKUs. We expect a similar
trend to sustain, going forward. We model in 14% revenue CAGR in FY19-
22E, driven by 8% volume growth.
Exhibit 9: Revenue trend
864.7
1009.8
1211.8
1480.8
1713.0
1631.2
1941.1
2292.1
2589.6
2981.5
3403.4
0.0
500.0
1000.0
1500.0
2000.0
2500.0
3000.0
3500.0
4000.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E FY22E
| crore
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 6
ICICI Direct Research
Stock Tales | Relaxo Footwears
Exhibit 10: Volumes to grow at CAGR of 8%... 8.4
8.7
9.2 10.0
10.8
12.3
13.6
13.5 1
5.7 1
8.4
19.8
21.2
22.9
0.0
5.0
10.0
15.0
20.0
25.0
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20E
FY21E
FY22E
Source: Company, ICICI Direct Research
Exhibit 11: …with realisation improving 6% in FY19-22E
66
80
94 1
01 1
12 121
126
121
123
125
131 141
149
0
20
40
60
80
100
120
140
160
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20E
FY21E
FY22E
Source: Company, ICICI Direct Research
Benign RM costs, product premiumisation to aid margins….
Relaxo, through sustained focus on cost optimisation in manufacturing
facilities and enhanced yield improvement has achieved healthy profitable
growth. Furthermore, premiumisation of the product portfolio has resulted
in steady margin expansion. In tandem with the topline growth, EBITDA has
grown at a significant CAGR of 18% in FY14-19 (margins expanded 200 bps
to 14.1%). Major raw materials for the company include ethylene vinyl
acetate (EVA: 15-18%), polyurethane (PU: 14-15%) and rubber (7-8%). EVA
and PU are largely imported and (~40%) and are crude linked derivatives.
With a reversal in raw material prices, gross margins for YTDFY20 improved
significantly by 300 bps YoY to 56.0%. Premiumisation of product portfolio
and benign RM prices are key triggers for margin expansion, going forward.
We expect EBITDA margins to improve 250 bps in FY19-22E, translating into
EBITDA CAGR of 20%. The recent cut in corporate tax rate is a big positive
for Relaxo as it was hitherto a full tax paying company. Hence, we expect
PAT to grow 28% in FY19-22E.
Exhibit 12: EBITDA margin trend
146.6
200.6
241.1 230.9
302.1 324.3
405.3
486.0
565.0
12.1
13.514.1 14.2
15.6
14.1
15.7
16.3 16.6
0
2
4
6
8
10
12
14
16
18
0
100
200
300
400
500
600
FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E FY22E
%
| crore
EBITDA EBITDA Margin
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 7
ICICI Direct Research
Stock Tales | Relaxo Footwears
Exhibit 13: PAT trend
65.6103.0
120.3120.0
161.1
175.4
251.7
309.6
370.7
0
50
100
150
200
250
300
350
400
FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E FY22E
| crore
Source: Company, ICICI Direct Research
Company expected to maintain its debt free status
Average capex over the last five years has been in the range of ~| 110 crore.
Higher sweating of assets has resulted in healthy A/TO of ~3x. Relaxo has,
over the years, maintained a stringent net working capital cycle of 60 days.
Despite liquidity stress in trade channels, receivable days remained robust
with average of ~27 days. A capital efficient business model has resulted in
healthy operating cash flow generation (average CFO/EBITDA: 55%). We
expect the company to generate healthy FCF, going forward, keeping the
company virtually debt free (D/E: 0.2x). We expect RoCE to improve 450 bps
to 27.6%. In tandem with increasing demand, we expect capex intensity to
sustain, going forward (will be funded through internal accruals).
Exhibit 14: Working capital trend
64.9
59.0
63.9
65.0
65.0
65.0
27.6
32.6
31.3
30.0
30.0
30.0
28.1
32.9
30.4
30.0
30.0
30.0
64.4
58.8
64.8
65.0
65.0
65.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
FY17 FY18 FY19 FY20E FY21E FY22E
Inventory Days Debtor Days Creditor Days Cash cycle
Source: Company, ICICI Direct Research
Exhibit 15: Return ratio trend
23.7
28.0
25.1
19.8 21.2
15.9
19.4 20.2 20.7
26.9 27.8
28.7
26.2
28.4
23.1
25.1 26.9 27.6
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
FY14 FY15 FY16 FY17 FY18 FY19 FY20E* FY21E FY22E
%
RoE RoCE
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 8
ICICI Direct Research
Stock Tales | Relaxo Footwears
Exhibit 16: D/E ratio trend
1.0
0.6 0.6
0.4
0.20.2
0.1 0.10.0 0.0
0.0
0.2
0.4
0.6
0.8
1.0
1.2
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E FY22E
(x)
Source: Company, ICICI Direct Research
Key risk and concerns
Significant import dependence for raw material: Currently, ~ 40% of raw
materials used by the company are imported (EVA ~ 18%, PU ~ 15%
and rubber ~ 7%). Fluctuation in prices of these crude-linked products
and volatility in currency exchange rates can impact the margins of the
company. Furthermore, the government had recently hiked the custom
duty on footwear (from 25% to 35%) and parts of footwear (from 15%
to 20%). Inability to undertake price hike may impact gross margins
High level of competition may impact margins: Increased level of
competition from new entrants as well as unorganised players can
impact the profitability metric for the footwear industry. Relaxo, being a
known brand, can face price undercutting by new players and
unorganised players to grab market share, which may lead to pressure
on margins over the medium to long term
Liquidity stress in MBO channel: Among various distribution channels,
MBOs are facing liquidity stress leading to lower offtake across product
categories. From Relaxo’s perspective, it is significantly dependent on
the MBO channel with the same contributing ~ 80% of its revenues.
Continued liquidity stress in the MBO channel can adversely impact the
revenue growth trajectory and also inflate the working capital cycle
ICICI Securities | Retail Research 9
ICICI Direct Research
Stock Tales | Relaxo Footwears
Financial Summary
Exhibit 17: Profit & loss statement
(Year-end March) FY19 FY20E FY21E FY22E
Net Sales 2,292.1 2,589.6 2,981.5 3,403.4
Growth (%) 18.1 13.0 15.1 14.2
Total Raw Material Cost 1,072.3 1,152.4 1,320.8 1,497.5
Gross Margins (%) 53.2 55.5 55.7 56.0
Employee Expenses 258.7 293.9 336.9 384.6
Other Expenses 636.8 738.1 837.8 956.4
Total Operating Expenditure 1,967.8 2,184.4 2,495.5 2,838.5
EBITDA 324.3 405.3 486.0 565.0
EBITDA Margin 14.1 15.7 16.3 16.6
Interest 6.9 7.0 6.5 5.0
Depreciation 62.4 70.8 77.6 84.4
Other Income 13.0 9.0 12.0 20.0
Exceptional Expense - - - -
PBT 268.0 336.5 413.9 495.6
Total Tax 92.5 84.8 104.3 124.9
Profit After Tax 175.4 251.7 309.6 370.7
Source: Company, ICICI Direct Research
Exhibit 18: Cash flow statement
(Year-end March) FY19 FY20E FY21E FY22E
Profit/(Loss) after taxation 175.4 251.7 309.6 370.7
Add: Depreciation 62.4 70.8 77.6 84.4
Net Increase in Current Assets -161.5 -118.4 -151.1 -173.4
Net Increase in Current Liabilities 41.9 22.2 32.5 34.9
CF from operating activities 118.2 226.3 268.6 316.6
(Inc)/dec in Investments 0.5 -1.3 0.0 0.0
(Inc)/dec in Fixed Assets -259.5 -113.2 -106.8 -106.8
Others 1.6 -0.3 -0.3 -0.3
CF from investing activities -257.4 -114.8 -107.1 -107.1
Inc / (Dec) in Equity Capital 0.4 12.4 0.0 0.0
Inc / (Dec) in Loan -38.4 -16.9 -40.0 -10.0
Others 175.5 -70.1 -74.3 -111.2
CF from financing activities 137.4 -74.6 -114.3 -121.2
Net Cash flow -1.8 36.9 47.2 88.3
Opening Cash 4.0 2.2 39.1 86.2
Closing Cash 2.2 39.1 86.2 174.5
Source: Company, ICICI Direct Research
Exhibit 19: Balance Sheet
(Year-end March) FY19 FY20E FY21E FY22E
Equity Capital 12.4 24.8 24.8 24.8
Reserve and Surplus 1,092.7 1,274.2 1,509.5 1,769.0
Total Shareholders funds 1,105.1 1,299.1 1,534.3 1,793.8
Total Debt 86.9 70.0 30.0 20.0
Non Current Liabilities 34.5 34.5 34.5 34.5
Source of Funds 1,226.4 1,403.5 1,598.8 1,848.3
Gross block 941.1 1,041.1 1,141.1 1,241.1
Less: Accum depreciation 140.6 203.0 273.8 351.4
Net Fixed Assets 800.5 838.0 867.2 889.7
Capital WIP 10.2 15.0 15.0 15.0
Intangible assets 48.9 48.9 48.9 48.9
Investments 0.2 1.5 1.5 1.5
Inventory 401.5 461.2 531.0 606.1
Cash 2.2 39.1 86.2 174.5
Debtors 196.6 212.8 245.1 279.7
Loans & Advances & Other CA 136.9 179.3 228.4 292.0
Total Current Assets 737.2 892.4 1,090.7 1,352.3
Creditors 190.9 212.8 245.1 279.7
Provisions & Other CL 187.2 187.4 187.7 188.0
Total Current Liabilities 378.1 400.3 432.8 467.7
Net Current Assets 359.1 492.1 657.9 884.6
LT L& A, Other Assets 7.6 7.9 8.2 8.6
Other Assets 0.0 0.0 0.0 0.0
Application of Funds 1,226.4 1,403.5 1,598.8 1,848.3
Source: Company, ICICI Direct Research
Exhibit 20: Key ratios
(Year-end March) FY19 FY20E FY21E FY22E
Per share data (|)
EPS 7.1 10.1 12.5 14.9
Cash EPS 9.6 13.0 15.6 18.3
BV 44.5 52.4 61.8 72.3
DPS 0.9 1.8 3.0 4.5
Cash Per Share 0.1 1.6 3.5 7.0
Operating Ratios (%)
EBITDA margins 14.1 15.7 16.3 16.6
PBT margins 11.7 13.0 13.9 14.6
Net Profit margins 7.7 9.7 10.4 10.9
Inventory days 63.9 65.0 65.0 65.0
Debtor days 31.3 30.0 30.0 30.0
Creditor days 30.4 30.0 30.0 30.0
Return Ratios (%)
RoE 15.9 19.4 20.2 20.7
RoCE 23.1 25.1 26.9 27.6
Valuation Ratios (x)
P/E 93.3 65.1 52.9 44.2
EV / EBITDA 50.8 40.5 33.6 28.7
EV / Sales 7.2 6.3 5.5 4.8
Market Cap / Revenues 7.1 6.3 5.5 4.8
Price to Book Value 14.8 12.6 10.7 9.1
Solvency Ratios
Debt / Equity 0.1 0.1 0.0 0.0
Debt/EBITDA 0.3 0.2 0.1 0.0
Current Ratio 1.9 2.1 2.3 2.5
Quick Ratio 0.9 1.0 1.1 1.2
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 10
ICICI Direct Research
Stock Tales | Relaxo Footwears
RATING RATIONALE
ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its
stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,
Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as
the analysts' valuation for a stock
Buy: >15%
Hold: -5% to 15%;
Reduce: -15% to -5%;
Sell: <-15%
Pankaj Pandey Head – Research [email protected]
ICICI Direct Research Desk,
ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai – 400 093
ICICI Securities | Retail Research 11
ICICI Direct Research
Stock Tales | Relaxo Footwears
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