Relaxo Footwears Ltd Share Price

 

Stock Analysis: Relaxo Footwears Ltd for April 2022

About Relaxo Footwears Ltd:

Relaxo Footwears Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 28,808.21 Crore) operating in Leather sector. Relaxo Footwears Ltd. key Products/Revenue Segments include Footwear, Scrap, Others, Wind Power, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2021.

Overview:

1) Consumer Discretionary: Footwears.

2) Mid Cap: With a market cap of ₹29,136 cr, stock is ranked 172

3) Low Risk: Stock is 1.97x as volatile as Nifty

4) 52 week: High-1448,Low- 841, & Current Price- 1130. 

 

Fundamental Analysis:

Relaxo Footwears Ltd.

For the quarter ended 31-12-2021, the company has reported a Standalone Total Income of Rs 748.99 Crore, up 3.81 % from last quarter Total Income of Rs 721.50 Crore and up 10.80 % from last year same quarter Total Income of Rs 675.98 Crore. Company has reported net profit after tax of Rs 70.10 Crore in latest quarter.

Deliveries: Last trading day stock delivery percentage 42.74 %

Overview:

1) P/E Ratio: 103.44

2) EPS- TTM : 10.92

3) PB Ratio:   18.40

4) Returns: 1 week -1.43%, 1 month -2.8%, 3 month -14.52% and 1 year 26.7%

5) Shareholding Pattern:  Promoters: 70.768 Pledge 0.00

FII:    3.81

DII:    7.08 Mutual Fund:  6.98

OTHERS:  18.33

 

What Is Fundamental Analysis?

Fundamental Analysis is the statistical method of performing fundamental analysis. It can help to learn the patterns in the historical data and applying it to the future. Essentially, it involves taking a look at the fundamental drivers of the stock and value of a stock. Using such methods, a very good analyst could make an astonishing return for his/her clients. However, there are several different methods of Fundamental Analysis depending on your personality and skill set. The common fundamental ways are Fundamental Indexing, fundamental Dividend Yield and Fundamental Discounted Cash Flow analysis. Fundamental Indexing When you buy a stock, you simply buy the whole company.

READ MORE......

  

Technical Analysis:

Moving average (on daily chart):

Relaxo Footwears Ltd: Stock currently trading at Rs.1130 which is below of 50, 100 and 200 days moving average.

Moving average crossover (on daily chart): 

Short term: 20 & 5 SMA crossover- bullish

Medium term: 20 & 50 SMA crossover- bearish

Long term: 50 & 200 SMA crossover- bearish

Indicators (on daily chart):

RSI (14): RSI is 33.01 i.e neutral

MACD (12,26,9): MACD recommendation is bearish

What is Technical Analysis and How Does it Work?

1. Introduction to Technical Analysis:

Technical analysis charts study the charts of a security for forecasting its price movement either in the short-term or long-term.

Technical analysis charts study the charts of a security for forecasting its price movement either in the short-term or long-term. One way to do this is through chart patterns on a stock’s price and volume. Chart patterns are formations that appear on a stock’s chart, which can signal when it will change direction.

There are many different types of chart patterns, but they all have one thing in common: They identify an entry point into a trade where an investor can make money by identifying when stocks will change direction.

2. Meaning of Charts and Patterns in Technical Analysis:

Technical analysis Charts is a way of forecasting the future value and movements of financial instruments or currencies by analysing statistics generated by price movements over time.

Technical analysis charts are trained to recognize patterns in the market that indicate what might happen next. It is a good idea to get acquainted with some basic patterns as they can serve as an indicator for future price movement.

Patterns like are Head and Shoulders, Flags, Pennants, Triangle, and Rectangle patterns will be discussed in this section.

READ MORE.... 

 

Strengths:

1)  The company has shown a good profit growth of 21.87% for the Past 3 years.

2)  The company has significantly decreased its debt by 19.16 Cr.

3)  Company has been maintaining healthy ROCE of 26.47% over the past 3 years.

4)  Company is virtually debt free.

5)   Company has a healthy Interest coverage ratio of 21.93.

6)   The company has an efficient Cash Conversion Cycle of 54.40 days.

7)   Company has a healthy liquidity position with current ratio of 2.40.

8)   The company has a good cash flow management; CFO/PAT stands at 1.32.

9)   The company has a high promoter holding of 70.78%.

 

Limitations:

1) The company has shown a poor revenue growth of 6.72% for the Past 3 years.

2) The company is trading at a high PE of 103.30.

3) The company is trading at a high EV/EBITDA of 58.88.

 

Entry Point: Good time to consider, as stock is not in overbought zone.

Best Entry Point: Above 1200.

Short term target: The short term target (2 months to 6 month) for Relaxo Footwears Ltd.

Target 1: Rs.1240 (one month)

Target 2: Rs.1340 (2-3 months)

Target 3: Rs.1445 (6 months)

 

Stop loss:

Stop Loss : Rs. 1175

 

About The Post 

Through this article, I shared with you some information about Relaxo Footwears Ltd. If you like this article then share with your friends so that they can plan trading or long term investment from today. Apart from this if you have any problem or suggestion or feedback, then email me. I will try to help you.

Disclaimer

Stock Analysis by R. Ansari

Source: ETmarkets, NSE, Tickertape & Ticker.finology.in