The midcap stock rose 0.5 percent to its intraday high of Rs 921.30 from its previous close of Rs 916.55 on Tuesday after the company announced the acquisition of 30-acre land for future manufacturing facilities
According to Relaxo Footwear’s filing, the company was declared the successful bidder in an e-auction for a 30-acre land parcel in the Pathredi Industrial Area, Rajasthan, which will be used for future manufacturing needs.
The auction was held by IndusInd Bank Limited on December 11, 2023, and the acquisition cost is approximately INR 135 crores. The completion of the acquisition is subject to obtaining customary and statutory approvals.
Looking at the finances of Relaxo Footwears Ltd, the net revenue increased by 6.8 percent year over year, from Rs 669 crore in Q2FY23 to Rs 715 crore in Q2FY24.
In addition, the net profit increased by 100 percent year over year, from a net profit of Rs 22 crore in Q2FY23 to a net profit of Rs 44 crore in Q2FY24.
Relaxo Footwears Ltd has maintained zero debt for the last 3 years, company also has a good current ratio of 2.5. However, the company has a high price-to-earnings ratio is 117 compared to its peers additionally the company has a lower net profit margin compared to the historical 3-year NPM Margin.
The company’s promoters hold a 71.3 percent stake in the company, with 3.2 percent owned by foreign institutional investors, 17 percent owned by the general public, and 8.5 percent owned by domestic institutional investors.
Relaxo Footwears Ltd is a Mid-cap company with a market capitalization of 22,654. The share price of the company rose by 1 percent in the last month.
Relaxo Footwears Limited is India’s largest footwear manufacturer, specializing in non-leather products such as rubber/EVA slippers, canvas shoes, sports shoes, sandals, school shoes, and other styles of footwear.
Written by Sriram KV
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