Relaxo Footwears Ltd
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Business Overview
Relaxo Footwears Ltd is a leading Indian footwear manufacturer known for its quality and affordability. Catering to a diverse audience, from children to adults, Relaxo offers a wide range of stylish and comfortable footwear options. The brand is synonymous with durability and innovation, making it a trusted choice for everyday wear. With a strong distribution network across India, Relaxo Footwears Ltd is committed to delivering value and comfort to its customers, ensuring they step out in style without compromising on quality.
- Established leader in the Indian footwear market
- Wide range of products for all age groups
- Focus on quality and comfort
- Strong distribution network across India
- Innovative designs catering to modern trends
Investment Thesis
Relaxo Footwears Ltd stands out as a compelling investment due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position Relaxo for sustained growth in the competitive footwear market.
- Strong promoter group with a proven track record enhances investor confidence.
- Expanding digital services create new revenue streams and customer engagement.
- Attractive valuation offers a favorable entry point compared to industry peers.
- Robust brand recognition and diverse product portfolio support market leadership.
- Growing demand for affordable footwear in India aligns with Relaxo's offerings.
Opportunity vs Risk
- Growing demand for affordable footwear
- Expansion into tier-2 and tier-3 cities
- Strong brand recognition in India
- E-commerce growth boosting sales
- Sustainable product lines gaining popularity
- Intense competition in footwear market
- Rising raw material costs
- Economic downturn affecting consumer spending
- Regulatory changes impacting operations
- Supply chain disruptions due to global events
Peer Perspective
Relaxo Footwears Ltd trades at a discount to peers like Bata India and Khadim India, primarily due to margin pressures. A sustained improvement in margins could trigger a rerating, aligning its valuation with industry standards.
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10BusinessHighThe footwear sector is growing with increasing demand for affordable and quality products.
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10GrowthHighConsistent revenue growth over the past few years, but profit margins have been under pressure.
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10ProfitabilityHighROE and ROCE are decent, but OCF has shown some volatility.
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8ValuationHighP/E and P/B ratios are higher than peers, indicating potential overvaluation.
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7BalanceHighModerate debt levels with reasonable liquidity.
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6GovernanceGoodPromoter holding is strong, but there are concerns about pledging.
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5DriversGoodGrowth drivers exist, but execution risks are notable.
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5TechnicalsGoodMarket sentiment is mixed with low liquidity.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 80/100
- Governance: 65/100
- Market Confidence: 72/100