|
Quantamental
Equity Research on RELAXO FOOTWEARS LTD | Release: 30 Nov 2018 14:29:27
UTC+05:30 | Reporting Currency: INR | Trading Currency: INR |
Exchange:NSE/BSE NSE CODE:RELAXO and BSE CODE:530517 |
| Last Close: |
INR 756.65 |
| Fair Value: |
INR 238.35 |
| Est. Price by Mar 19: |
INR 393.5 |
| Market Capitalization (INR
Crs): |
9112.52 |
| Industry: |
Footwear |
| Rating: |
STRONG SELL |
| Downside: |
-48% |
| Company Profile |
|
|
| Relaxo Footwears is a market leader in the Footwear Industry.
The company has 'state of the art' manufacturing facilities at Bahadurgarh
(Haryana), Bhiwadi (Rajasthan) and Haridwar (Uttarakhand). |
| Growth Per Share |
|
|
| Particulars |
1-Year |
3-Year |
5-Year |
|
| Revenue % |
20% |
51% |
117% |
|
| EBIT % |
31% |
57% |
195% |
|
| Earnings % |
34% |
56% |
259% |
|
| Book Value
% |
26% |
107% |
255% |
|
| Stock Total
Return % |
40% |
94% |
1126% |
|
|
| Share holding
pattern |
| Particulars |
%age |
|
| (A) Promoter
& Promoter Group |
74.25 |
|
| (B) FII/FPI |
3.93 |
|
| (C)
DII/Insurance Companies |
2.20 |
|
| (D) Public holding < 2 lakhs of cap. |
4.40 |
|
| (E) Others |
15.22 |
|
| Grand Total |
100.00 |
|
|
| Fundamentals
(Historical and Estimated) |
| Particulars |
Mar-10 |
Mar-11 |
Mar-12 |
Mar-13 |
Mar-14 |
Mar-15 |
Mar-16 |
Mar-17 |
Mar-18 |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
| Price |
28 |
28 |
33 |
56 |
149 |
354 |
479 |
492 |
688 |
394 |
464 |
532 |
583 |
628 |
|
| Return on
Equity |
34% |
20% |
23% |
21% |
24% |
28% |
25% |
20% |
21% |
19% |
19% |
18% |
17% |
16% |
|
| Price to
Earning |
8.9 |
12.7 |
9.8 |
15.0 |
27.2 |
41.2 |
47.8 |
49.2 |
51.4 |
26.6 |
26.6 |
26.6 |
26.6 |
26.6 |
|
| EVTI |
0.9 |
0.8 |
0.7 |
0.9 |
1.7 |
3.1 |
3.6 |
3.7 |
4.3 |
2.1 |
2.1 |
2.1 |
2.0 |
2.0 |
|
| EVTIFM |
8.9 |
12.7 |
9.8 |
15.0 |
27.2 |
41.2 |
47.8 |
49.2 |
51.4 |
26.6 |
26.6 |
26.6 |
26.6 |
26.6 |
|
| Price to Book
Value |
3.1 |
2.5 |
2.3 |
3.1 |
6.5 |
11.6 |
12.0 |
9.7 |
10.9 |
5.1 |
5.0 |
4.8 |
4.5 |
4.2 |
|
| Debt to
Equity |
1.3 |
1.4 |
1.0 |
1.1 |
0.7 |
0.7 |
0.5 |
0.3 |
0.2 |
0.1 |
0.0 |
0.0 |
0.0 |
0.0 |
|
| Dividend Yield |
1% |
1% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
|
| Cash Flow to
Firm |
7% |
-1% |
23% |
0% |
8% |
1% |
2% |
2% |
1% |
4% |
4% |
5% |
6% |
7% |
|
|
| Detailed Estimates |
| Title |
Mar-18 |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
| Sales |
1,956.92 |
2,307.41 |
2,646.20 |
2,949.33 |
3,191.98 |
3,351.58 |
|
| EBITDA |
306.55 |
342.71 |
393.03 |
438.05 |
474.09 |
497.79 |
|
| EBIT |
252.21 |
278.63 |
323.67 |
365.22 |
399.96 |
430.84 |
|
| PBT |
243.62 |
270.04 |
318.49 |
365.22 |
399.96 |
430.84 |
|
| NPAT |
161.07 |
178.26 |
210.24 |
241.08 |
264.02 |
284.40 |
|
| Price to
Earning |
51.39 |
26.58 |
26.58 |
26.58 |
26.58 |
26.58 |
|
| Price to Book
Value |
10.87 |
5.14 |
5.04 |
4.83 |
4.49 |
4.16 |
|
| Debt to
Equity |
0.20 |
0.10 |
- |
- |
- |
- |
|
| Return on
Equity |
0.21 |
0.19 |
0.19 |
0.18 |
0.17 |
0.16 |
|
| Enterprise Value to Total Income (EVTI) |
4.30 |
2.09 |
2.10 |
2.11 |
2.05 |
2.02 |
|
| Enterprise Value to Total Income to Firm Margin(EVTIFM) |
51.94 |
26.99 |
26.79 |
26.54 |
25.52 |
24.55 |
|
| Price or Est.
Share Prices |
687.70 |
393.50 |
464.10 |
532.20 |
582.85 |
627.85 |
|
|
| DISCOUNTED CASH
FLOW |
| Title |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
| PBT |
270.04 |
318.49 |
365.22 |
399.96 |
430.84 |
|
| Interest |
8.59 |
5.18 |
- |
- |
- |
|
| Depreciation |
64.07 |
69.35 |
72.83 |
74.12 |
66.95 |
|
| Cash Flow
Before Tax |
342.71 |
393.03 |
438.05 |
474.09 |
497.79 |
|
| Tax Rate |
33.99 |
33.99 |
33.99 |
33.99 |
33.99 |
|
| Cash Flow
After Tax |
226.22 |
259.44 |
289.15 |
312.94 |
328.59 |
|
| Terminal Cash
Flow |
- |
4,004.02 |
|
| Total Cash
Flow |
226.22 |
259.44 |
289.15 |
312.94 |
4,332.61 |
|
| Present Value of
Cash Flow |
2,870.02 |
|
| Debt |
- |
|
| Value of Equity |
2,870.02 |
|
| Fair Value Per
Share |
238.35 |
|
|
| Equity |
|
|
|
|
9,113 |
|
| Debt |
|
|
|
|
153 |
|
|
| Beta |
Take from Reuters |
|
|
0.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Risk Free Rate |
Prevailing Yield in India |
|
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Market Risk Premium |
Assuming 8.82% premium
for Equity Investments |
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Paid |
|
|
|
|
9 |
|
| Tax Benefit |
|
|
|
|
3 |
|
| Interest Net of Tax |
|
|
|
|
6 |
|
| Debt |
|
|
|
|
153 |
|
| Cost of Debt |
|
|
|
|
4% |
|
| Cost of Equity |
|
|
|
|
16% |
|
| Debt Weight |
|
|
|
|
2% |
|
| Equity Weight |
|
|
|
|
98% |
|
| WACC |
|
|
|
|
15% |
|
|
| Cash Flow of Mar-23 E |
|
|
|
|
328.59 |
|
| Growth |
|
|
|
|
7.5% |
|
| Present Value of Terminal
Cashflow |
|
|
|
|
4,004.02 |
|
|
| Peer Comparision |
| # |
Name |
CMP
Rs. |
Mar
Cap Rs.Cr. |
B.V.
Rs. |
Annualized
ROE % |
ROCE
% |
Latest
EVTI |
Latest
EVTIFM |
CMP
/ BV |
P/E |
Debt
/ Eq |
Div
Yld % |
Growth
Rate R % |
SGR
% |
Ann
Total Income |
PQEIOI |
QoQ
Sales % |
Qtr
Sales Var % |
QoQ
Profits % |
Qtr
Profit Var % |
Graham's
Number Rs. |
| 1 |
Bata India |
1,001.45 |
12,871 |
121.08 |
18.63 |
25.43 |
4.46 |
72.37 |
8.27 |
49.80 |
- |
0.40 |
14.34 |
14.46 |
2,752 |
52.96 |
316 |
-15.58 |
14.68 |
-32.57 |
29.77 |
| 2 |
Relaxo Footwear |
756.65 |
9,113 |
68.72 |
25.60 |
29.63 |
4.20 |
67.41 |
11.01 |
51.47 |
0.20 |
0.20 |
22.73 |
22.38 |
2,206 |
74.25 |
274 |
-3.76 |
18.56 |
-14.12 |
23.00 |
| 3 |
Mirza Internatio |
77.15 |
928 |
50.15 |
13.92 |
19.01 |
1.01 |
13.71 |
1.54 |
12.74 |
0.50 |
1.17 |
12.00 |
9.26 |
1,183 |
70.19 |
58 |
12.96 |
23.04 |
-10.85 |
-16.74 |
| 4 |
Khadim India |
589.55 |
1,059 |
157.29 |
15.86 |
21.73 |
1.22 |
33.02 |
3.75 |
30.21 |
0.26 |
0.17 |
15.11 |
14.39 |
914 |
59.70 |
164 |
19.40 |
30.74 |
15.92 |
-24.65 |
| 5 |
Sreeleathers |
170.00 |
428 |
109.44 |
28.47 |
12.77 |
1.45 |
11.66 |
1.55 |
17.65 |
- |
- |
28.47 |
31.50 |
225 |
64.55 |
71 |
25.99 |
12.30 |
160.08 |
29.80 |
| 6 |
Superhouse Ltd |
134.25 |
148 |
256.64 |
12.81 |
7.37 |
0.41 |
8.46 |
0.52 |
6.73 |
0.68 |
0.77 |
11.68 |
10.78 |
624 |
54.88 |
30 |
3.95 |
13.94 |
20.35 |
739.51 |
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