@harshitgoel - Thanks for sharing the detailed notes from Relaxo AGM. By any chance do you have information about domestic vs export business top line and bottom line numbers ? The stock has been a steady compounder for all the investors.
PS: Holding from 5+ years at 120 bucks !
Cheers !
Puneet
They must be fully utilizing their capacity assuming 313 working days. (313*7.5=2347 pairs)
Even if we consider 365 working daysâŚâŚ
Addition of 1 lakh pair per day 13.3%, looks minuscule over a period of three yearsâŚ.
Where the growth will come from!
Another factor to consider is , price per pair is stagnant since last four years, growth is fueled by only volume which was not the case earlierâŚ.
| 2016 | 2017 | 2018 | 2019 | ||
|---|---|---|---|---|---|
| Revenue | Rs. (in cr.) | 1715 | 1739 | 1955 | 2292 |
| No. of Pairs | nos. ( in cr.) | 13.55 | 13.5 | 15.74 | 18.39 |
| Price per pair | Rs. | 127 | 129 | 124 | 125 |
GST stabilizing and raw material prices firming up, this year one can expect price movements
yes but the management said their avergae capacity utilisation is only 75% and in peaks it is 90%, so we may like to assume at 80% utilization instead of a very aggressive number of 90%.
I have created a semi-automated peer comparison sheet for most of the companies in the industry.
Footwear Industry Data.xlsx (241.8 KB)
You can find comparisons of more industries here:
Does relaxo doesnt have leather footwear category as on online search i could find only synthetic leather ?
No, they are not into leather footwear. Bahamas, Flite, Sparx, Mary Jane, School mate are some of their brands
Relaxo P/E for 2019 is shown as 27. Is that correct? how did you calculate that?
Hi Dayanand,
Thanks for pointing that out. No that is not the correct figure. The data in the comparison sheet is fed from the export to excel functionality on the screener website. The price information used for annual PE calculation is probably the closing price on the last trading day of the financial year. This is provided automatically from the screener website.
The denominator, the EPS is also sourced from the screener website, The website is, however, showing different EPS (7.08) for FY19 and the same being automatically populated in the excel is 14.14.
There was a 1:1 bonus in FY20 which is the cause of this. I do not know when they will update the corporate actions in their export to excel feature, however, they seem to promptly update the same on their website and one should use that for per share data.
Again, thanks for highlighting this discrepancy.
Hi Everyone,
I recently became a part of the ValuePickr community and on seeing the detailed analysis here, i am motivated to share some of the data that i have been working on. I have put together a macro viewpoint of the footwear industry. I have not got into details of any company financially. Just a back of the hand estimation of where I see the footwear industry and the top 3 leaders in this space. Please feel free to rip it apart.
Thanks and Regards,
Shweta
relaxo 1.pdf (49.4 KB)
relaxo 2.pdf (45.0 KB)
relaxo 3.pdf (68.9 KB)
Nice Analysis.
what is the source of india and world wide demand supply numbers please?
regards
Hi Arjun,
Following are the sources i used for the above analysis.
I did not buy the report just sourced information from the free content available at the beginning of the above report.
Same figures are mentioned in the Annual report of Relaxo ,however , very difficult to get free information on the web, is one roadblock i faced while studying this sector.
Thanks,
Regards,
Shweta.
How is this going to impact Indian Footwear Companies
Great analysis to the point! As you have rightly pointed out, the avg price is a big winner for Relaxo over its peers.
But were you able to figure out the avg price of different types of footwear by any chance?
Hi Mukund,
Thank you for your feedback. Much appreciated.
I did not research into footwear by type for this analysis. However,multiple sources that i came across indicated that sportswear and childrenâs wear are some of the fastest growing segments.
You can corroborate this data with the report link i am attaching. In the report they have given various data mixes and their growth rates for the footwear industry.
Thank you.
Regards,
Shweta
they are not promoter.
No holding
Disclosure of material impact of COVID-19 pandemic under SEBI Regulations
This disclosure epitomises - âHow to say a lot while saying nothing at allâ
Disc. No position
