Relaxo Footwears

Request you to publish e book on Fundamental analysis too. It would really help us.

 

For Fundamentals call I guess, one need to wait for atleast 12+ months once you enter after proper research.

My 2 cents:

Good mid-cap - Opto Cirtus Ltd. - Entry point: NOW - Traget: 250+ - TimeLine: Don't know - maybe 2 years. (don't take me seriously, do your own research - I am ok to lose my money in this counter)

OCIL is a leading Indian medical device company headquartered in Bengaluru. Having grown strongly over the past few years (consolidated sales have grown at an average annual rate of 57% over the past 5 years), OCIL is now a leading manufacturer of medical equipment and patient monitoring systems that are ‘invasive’ (products that are inserted inside the human body, like stents, balloons and catheters) and ‘non-invasive’ (devices like pulse oximeters, digital thermometers and emergency cardiac care equipments).

Positives:
OCIL has grown its consolidated sales and net profits at superb average annual rates of 48% and 60% over the past 9 years.
Lot of mergers and acquisitions in last 5 years - results of the same will now show in coming years

Negatives:
OCIL’s FY12 debt to equity ratio stood at around 0.7 times (not a major concern)
Huge Working capital requirement
Very recent issues with corporate governace (directors are denying) which resulted in price crash very recently.

 

Fundamentals require a lot of patience and more so entry at the right price from technicals is equally important. The Warren Buffett method works for some but as Shabbir pointed out in his book - it works if you plan to be the active shareholder. I was a fundamental investor in many stocks, some of which I still hold like Infosys, HUL etc. From my perspective, given the uncertain economy, one would find very few monopolies to invest in fundamentals. Most businesses themselves don't know if they will survive another year. For a fundamental investing, we should be looking at future industries like clean energy, biotech, etc. These stand a higher chance of healthy returns than the current basket of industries.

 

On Relaxo Footwear, since volumes are low then it may be an operator run up stock. The chart has been steady since last 2 years and only shot up since Apr/May'12.

Fundamental analysis will show that besides BATA this company has significant brand presence in mid markets and competitive pricing. The organized footwear market has only a few major players like BATA, Mirza & Liberty and Relaxo is second major company. The EPS and book value as Shabbir says are expensive and also there is some debt (need further analysis) on its balance sheet. Its best to avoid the stock.

 

Promoters stake is more in Relaxo which is 75% consistent quarter on quarter.

FII stake is just 1.67 in Dec -11, 1.67 in Mar -12 and eventually FII stake reduced to 1.53 in Jun - 12.

DII's have not invested at all in this stock.

Retailers also very less percent which is 24 %

Since Promoters stake is more we could see more flu cations in a day like Rs 100 up and Rs 100 down.

Mutual fund (DII) not shown interest.

Please correct me If Im wrong.

 

Good work sujan, could u tell me the web site name from u have taken this info.

 

I extracted this information from www.bseindia.com

 

i agree with sanjay sansawala & sujan4bw.

 

I agree and there is always a chance of promoters to artificially jack up the prices with help from some key operators. This happened last month: http://articles.economictimes.india...065517_1_artificial-market-and-price-kyc-sebi

I may be wrong, but we need to watch out for some of these companies.