Relaxo Footwears shares are down by almost 50% in the last 15 months. Relaxo saw a major uptrend and a lot of Youtube videos and articles were posted on why Relaxo footwears were a good buy, but now, that the stock price has corrected by a huge margin, investors are worried, if they should continue holding or should sell the shares and move on.
Saurabh Mukherjea from Marcellus has exited Relaxo shares whereas Youtuber Akshat has started taking positions in Relaxo. What should you do?
Let us look at the Relaxo share price prediction for the next 7 years (from 2023 to 2030). But before that, let us learn more about the company.
What is Relaxo Footwears?
Relaxo footwears is one of the largest manufacturers of footwear in India. With its extensive range of products and a strong brand image, the company has become a household name in the country.
In recent years, the stock market has shown a great deal of interest in the company’s performance, and many investors are now asking the question “What is the Relaxo Footwears share price target for 2023 to 2030?”
In this article, we will take a closer look at the company’s financials, market trends, and other factors that could impact its stock price in the coming years.
Stock history of Relaxo Footwears
Relaxo Footwears’ stock has experienced a steady rise since its listing on the Bombay Stock Exchange in 2004. Since then, the stock has gained more than 800%, making it one of the most successful stocks on the Indian stock market.
Relaxo Footwears’ stock also benefited from the implementation of GST in India in July 2017. The stock gained further momentum when the company announced its plans to open a new manufacturing unit in Uttar Pradesh in 2018. Relaxo Footwears’ stock also saw a surge in 2019 when the company announced its foray into the retail market with the opening of its first store in Delhi.
Looking forward, Relaxo Footwears is well positioned to capitalize on the growing demand for footwear in India. Currently, the stocks of Relaxo Footwears are trading at Rs. 875
Latest news about Relaxo Footwears
➤Purchase Relaxo Shoes with a target price of Rs. 930: Sharekhan by BNP Paribas.
➤ Saurabh Mukherjea has ended his relationship with Relaxo Footwears, dubbing their chappals as “wealth creators“.
➤ On May 10, 2023, Relaxo Footwears issued its Q4FY23 results, revealing that it had made a profit of Rs. 63.3 crore in FY23 Q4 as opposed to Rs. 62.9 crore in the same quarter last year. The company’s margin, a crucial indicator of a company’s profitability, dropped from 15.86% year-over-year (YoY) to 15.42% by 44 basis points.EBITDA, or profits before interest, taxes, depreciation, and amortization, increased by 6.3% year over year (YoY) to Rs 118 crore for the quarter ended March 31 from Rs 111 crore in the previous fiscal year.
➤Additionally, the business declared a final dividend of Rs 2.5 per equity share.
To buy Relaxo Footwears shares, you need to open a demat account with a stockbroker, and then deposit money into the trading account. Once the money is deposited, you can place an order for the desired number of shares by using the broker’s trading platform. The shares will be credited to your demat account once the transaction is completed.
You can also buy shares from the following trading platforms:
|When||Maximum Price||Minimum Price|
According to our analysis, the Relaxo Footwear’s share price is expected to show a bearish trend in initial months of 2023.
The maximum price for May 2023 is estimated to be ₹900.23 and the minimum price is expected to be ₹495.56.
As we move forward in the year, the company’s stock price is predicted to reach a maximum of ₹1,079.62 in December 2023 and a minimum of ₹495.56 in May 2023.
Overall, the Relaxo Footwear’s share price is expected to show an uptrend in 2023, which could be a good opportunity for investors to consider buying into the company’s stock.
|When||Maximum Price||Minimum Price|
Based on the table, the Relaxo Footwear’s share price is expected to continue its upward trend in 2024 with growth percentages ranging between 20% to 50%. The maximum price for January 2024 is estimated to be ₹1,136.45 and the minimum price is expected to be ₹874.19, indicating a positive outlook for the company’s stock price in the first quarter of the year. As we move into the later months of 2024, the company’s stock price is expected to reach a maximum of ₹1,511.52 in December and a minimum of ₹783.28 in May. Overall, the Relaxo Footwear’s share price is expected to show a positive trend in 2024.
|When||Maximum Price||Minimum Price|
According to the data, Relaxo Footwear’s share price is expected to experience bullish trends in 2025 with a growth percentage ranging from 6.69% to 12.59%. The maximum share price target for 2025 is ₹1,833.50 and the minimum is ₹1,063.96. The uptrend in the share price is expected to be consistent throughout the year with a slight dip in April 2025. Investors can expect a solid return on investment if they consider buying Relaxo Footwear shares in 2025.
|Year||Maximum Price||Minimum Price|
The share price of Relaxo Footwears is expected to fluctuate from year to year from 2026 to 2030. In 2026, the maximum share price is projected to be ₹1,283.45 with a minimum of ₹898.41.
The following year in 2027, the share price is expected to reach a maximum of ₹1,090.93 and a minimum of ₹763.65. By 2028, the share price is expected to reach a high of ₹1,963.68 and a low of ₹1,374.57.
In 2029 and 2030, the share price is projected to reach a maximum of ₹4,033.70 and ₹4,492.07 respectively, with a minimum of ₹2,823.59 and ₹3,144.45 respectively.
It is important to note that these projections are based on past performance and are subject to market conditions and other factors that may affect the share price in the future.
Financial Condition of Relaxo Footwears: Last 5 years
|Profit before tax||243.62||267.98||291.71||391.16||310.60|
|Price to earning||47.98||54.50||65.71||74.67||114.07|
The financial performance of Relaxo Footwears over the last five years indicates a positive growth trend in terms of both revenue and profits. The company’s sales increased from ₹1,941.05 crore in the financial year ending March 2018 to ₹2,653.27 crore in the financial year ending March 2022, recording a growth of over 36% in four years. In the same period, the operating profit of the company also showed a substantial increase from ₹302.09 crore to ₹418.22 crore, which represents a growth rate of over 38%.
In conclusion, Relaxo Footwears has shown positive growth in terms of sales and operating profit in the last five years. Despite a dip in the net profit in the financial year ending March 2022, the company has consistently shown improvement in other areas, such as earnings per share and dividend payout.
At a target price of Rs 930 per share, Sharekhan advised purchasing shares of Relaxo Footwears. “Relaxo is well-poised to achieve revenue and earnings CAGR of 12 percent and 15 percent, respectively, over FY2022-FY2025E,” the brokerage said. “With a strong portfolio of value-for-money footwear products, enhanced capacity of 10.5 lakh pairs per day, and expansion in distribution reach (especially in southern markets),” the brokerage said.
ICICI Direct suggested in its research report that Relaxo Footwears should be held with a target price of Rs 930.
Axis Securities has given a buy suggestion of Relaxo Footwears with a target price of Rs.1120
Shares of Relaxo Footwears have a ‘hold’ recommendation from B&K Securities with a target price of Rs 1,140 per share. “We initiate coverage on the Indian footwear sector having a robust topline-led growth ahead,” the brokerage stated.
It is anticipated that Relaxo Footwears per share price will increase to ₹1,079.62 by the end of 2023.
The share price target of Relaxo Footwears for 2025 might be around ₹1,833.50.
The per share price of Relaxo Footwears might reach around ₹4,492.07 by the end of 2030.
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Based on the financial data of the last five years, it can be concluded that Relaxo Footwears has shown growth in terms of sales, operating profit, and net profit. The company’s net profit has increased over the years, which can be seen as a positive sign for investors.
Furthermore, the price to earning ratio of Relaxo Footwears has also increased over the years, indicating that the company’s shares are becoming more valuable.
Ramesh Kumar, the managing director of the company said that the company showed marginal improvement in volumes on Q-o-Q basis, primarily supported by price corrections undertaken. He said, the market is competitive and challenging for the company, so it has made price corrections to try and stay competitive.
In conclusion, although based on the growth in the financial performance of Relaxo Footwears over the last five years, it can be said that the company’s shares are a good option for investment, but the current decline in volume is a major worry.
I personally would be staying away from Relaxo at this point, however, if the stock price corrects to Rs.500 level, I am happy to revisit my position on Relaxo footwears again.
What did we learn?
- 1 What is Relaxo Footwears?
- 2 Stock history of Relaxo Footwears
- 3 Latest news about Relaxo Footwears
- 4 How to buy Relaxo Footwears shares?
- 5 Share Price Prediction of Relaxo Footwears: 2023 to 2030
- 6 Financial Condition of Relaxo Footwears: Last 5 years
- 7 Relaxo Footwears share price target by Experts
- 8 FAQS
- 9 Conclusion: Should you buy Relaxo Shares in 2023?