Content:
- Company Overview of Relaxo Footwears
- Company Overview of Bata India Ltd
- The Stock Performance of Relaxo Footwears
- The Stock Performance of Bata India Limited
- Fundamental Analysis of Relaxo Footwear
- Fundamental Analysis of Bata India
- Financial Comparison of Relaxo Footwears and Bata India
- Dividend of Relaxo Footwear and Bata India
- Advantages and Disadvantages of Investing in Relaxo Footwear
- Advantages and Disadvantages of Investing in Bata India
- How to Invest in Bata India and Relaxo Footwear Stocks?
- Relaxo Footwears vs. Bata India Limited- Conclusion
- Relaxo Footwears vs. Bata India – FAQ
Company Overview of Relaxo Footwears
Relaxo Footwears Limited, an Indian footwear manufacturing company, operates in three primary categories: Relaxo & Bahamas (rubber slippers), Flite (EVA and PU slippers) and Sparx (sports shoes, canvas shoes, sandals and sporty slippers). The company’s portfolio includes a range of well-known brands, such as Relaxo, Flite, Sparx, Bahamas, Boston, Mary Jane and Kid’s Fun.
Relaxo is a popular brand known for its rubber slippers catering to all customer segments, while Flite offers a selection of semi-formal slippers. Sparx specializes in sports shoes, sandals and slippers; Bahamas offers flip-flops; Boston provides formal footwear for men; Mary Jane offers modern women’s footwear; and Kid’s Fun offers footwear for children.
Company Overview of Bata India Ltd
Bata India Ltd. is one of the leading footwear retailers in India. It is renowned for its wide range of shoes, sandals and accessories for men, women and children. Founded in 1931, it operates through a vast network of retail stores and an online presence, catering to diverse consumer needs.
The company is known for its quality, comfort and affordability, offering both casual and formal footwear. Bata India is part of the global Bata Shoe Organization, which has a strong presence in over 70 countries. The brand continues to innovate, focusing on customer satisfaction and modern retail strategies and expanding its market reach.
The Stock Performance of Relaxo Footwears
The table below displays the month-by-month stock performance of Relaxo Footwears Ltd. for the past year.
| Month | Return (%) |
| Mar-2024 | -2.69 |
| Apr-2024 | 1.13 |
| May-2024 | -6.04 |
| Jun-2024 | 3.27 |
| Jul-2024 | 4.34 |
| Aug-2024 | -6.14 |
| Sep-2024 | 1.78 |
| Oct-2024 | -4.93 |
| Nov-2024 | -14.55 |
| Dec-2024 | -8.08 |
| Jan-2025 | -11.81 |
| Feb-2025 | -20.82 |
The Stock Performance of Bata India Limited
The table below displays the month-by-month stock performance of Bata India Ltd. for the past year.
| Month | Return (%) |
| Mar-2024 | -3.45 |
| Apr-2024 | 0.21 |
| May-2024 | -0.27 |
| Jun-2024 | 8.23 |
| Jul-2024 | 4.81 |
| Aug-2024 | -8.92 |
| Sep-2024 | -0.92 |
| Oct-2024 | -5.86 |
| Nov-2024 | 3.36 |
| Dec-2024 | -2.63 |
| Jan-2025 | -5.9 |
| Feb-2025 | -5.71 |
Fundamental Analysis of Relaxo Footwear
Relaxo Footwears Ltd. is a prominent Indian company specializing in the manufacture and marketing of footwear. Established in 1976, it has grown to become one of the largest footwear producers in the country. The company offers a diverse range of products, including casual, formal and sports shoes, catering to various customer segments.
The stock is priced at ₹403.00 with a market cap of ₹10,110.64 crore. It offers a dividend yield of 0.74%, with a 1-year return of -50.00%. Over 5 years, it has shown a CAGR of -9.08% and maintains a 5-year average net profit margin of 8.52%.
- Close Price (₹ ): 403.00
- Market Cap (Cr ): 10110.64
- Dividend Yield %: 0.74
- 1Y Return %: -50.00
- 6M Return %: -51.78
- 1M Return %: -19.41
- 5Y CAGR %: -9.08
- % Away From 52W High: 135.48
- 5Y Avg Net Profit Margin %: 8.52
Fundamental Analysis of Bata India
Bata India is a prominent footwear company in India that operates as a subsidiary of the global Bata Shoe Organization. Established in 1931, the brand has built a strong reputation for quality and innovative designs, catering to a diverse range of consumers. Bata India offers a wide variety of footwear, including formal and casual shoes, sandals and sports shoes, appealing to both men and women.
The stock is priced at ₹1236.45 with a market cap of ₹15,797.32 crore. It offers a dividend yield of 0.98%, with a 1-year return of -11.90%. Over 5 years, it has shown a CAGR of -3.31% and maintains a 5-year average net profit margin of 5.29%.
- Close Price ( ₹ ): 1236.45
- Market Cap ( Cr ): 15797.32
- Dividend Yield %: 0.98
- 1Y Return %: -11.90
- 6M Return %: -14.01
- 1M Return %: -8.97
- 5Y CAGR %: -3.31
- % Away From 52W High: 32.07
- 5Y Avg Net Profit Margin %: 5.29
Financial Comparison of Relaxo Footwears and Bata India
The table below shows a financial comparison of Relaxo Footwears Ltd and Bata India Ltd.
| Stock | RELAXO | BATAINDIA | ||||
| Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
| Total Revenue (₹ Cr) | 2801.34 | 2942.92 | 2865.60 | 3490.25 | 3540.33 | 3697.58 |
| EBITDA (₹ Cr) | 356.76 | 437.78 | 414.23 | 842.86 | 815.79 | 929.70 |
| PBIT (₹ Cr) | 231.66 | 290.29 | 256.71 | 548.08 | 476.71 | 571.81 |
| PBT (₹ Cr) | 210.01 | 269.27 | 236.80 | 429.84 | 350.63 | 447.14 |
| Net Income (₹ Cr) | 154.47 | 200.47 | 175.50 | 323.01 | 262.51 | 348.40 |
| EPS (₹) | 6.21 | 8.05 | 7.05 | 25.13 | 20.42 | 27.11 |
| DPS (₹) | 2.5 | 3.0 | 3.00 | 13.5 | 12.0 | 22.00 |
| Payout ratio (%) | 0.4 | 0.37 | 0.43 | 0.54 | 0.59 | 0.81 |
Points to be noted:
- (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
- PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
- PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
- Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
- EPS (Earnings Per Share): This shows the portion of a company’s profit allocated to each outstanding share of stock.
- DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
- Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.
Dividend of Relaxo Footwear and Bata India
Relaxo Footwear and Bata India both offer regular dividend payouts. Relaxo declared ₹3 in May 2024, while Bata announced ₹10 in July 2024. Both companies demonstrate a commitment to rewarding shareholders with consistent dividends. Check the table for complete details.
| Relaxo Footwear | Bata India | ||||||
| Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) | Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
| 9 May, 2024 | 22 August, 2024 | Final | 3 | 22 July, 2024 | 16 August, 2024 | Interim | 10 |
| 11 May, 2023 | 17 August, 2023 | Final | 2.5 | 29 May, 2024 | 31 July, 2024 | Final | 12 |
| 11 May, 2022 | 17 August, 2022 | Final | 2.5 | 18 May, 2023 | 3 August, 2023 | Final | 13.5 |
| 20 May, 2021 | 17 August, 2021 | Final | 2.5 | 25 May, 2022 | 4 August, 2022 | Final | 4 |
| 27 Feb, 2020 | 11 March, 2020 | Interim | 1.25 | 26 May, 2022 | 4 August, 2022 | Special | 50.5 |
| 10 May, 2019 | 18 September, 2019 | Final | 0.9 | 9 Jun, 2021 | 4 August, 2021 | Final | 4 |
| 11 May, 2018 | 18 September, 2018 | Final | 1.5 | 26 May, 2020 | 29 July, 2020 | Final | 4 |
| 26 May, 2017 | 13 Sep, 2017 | Final | 1 | 24 May, 2019 | 22 Jul, 2019 | Final | 6.25 |
| 16 May, 2016 | 7 Sep, 2016 | Final | 0.6 | 22 May, 2018 | 9 Jul, 2018 | Final | 4 |
| 11 May, 2015 | 15 Sep, 2015 | Final | 0.5 | 15 May, 2017 | 6 Jul, 2017 | Final | 3.5 |
Advantages and Disadvantages of Investing in Relaxo Footwear
Relaxo Footwears Ltd
The primary advantage of Relaxo Footwears Ltd. lies in its strong market position as a leading player in India’s footwear industry. Known for its affordable, comfortable and durable products, Relaxo serves a wide range of customers across the country.
- Affordable Product Range: Relaxo Footwears offers an extensive range of affordable footwear catering to all age groups. The company focuses on providing high-quality products at competitive prices, making it a preferred choice for budget-conscious consumers across India.
- Strong Distribution Network: Relaxo boasts an extensive distribution network across India, with a large presence in both urban and rural markets. This widespread reach ensures that its products are easily accessible to a diverse customer base, contributing to its strong market presence.
- Brand Recognition and Loyalty: The company has built strong brand recognition through its popular brands like Relaxo, Sparx and Bahamas. Its focus on quality and comfort has led to a loyal customer base, ensuring repeat business and sustained growth in the footwear market.
- Focus on Innovation and Technology: Relaxo Footwears invests in innovative manufacturing technologies to enhance product quality and efficiency. By continually improving its product designs and adopting new materials, the company ensures its offerings remain competitive in the ever-evolving footwear market.
- Sustainability Initiatives: Relaxo is committed to sustainability by incorporating eco-friendly practices in its operations. The company aims to reduce its environmental footprint through responsible manufacturing processes and sustainable sourcing of materials, appealing to environmentally conscious consumers and investors.
The main disadvantage of Relaxo Footwears Ltd lies in its dependence on the highly competitive footwear market. While the company enjoys a strong market position, it faces significant competition from both local and global footwear brands, which could impact future growth.
- Intense Market Competition: Relaxo Footwears operates in a highly competitive market with both established brands and new entrants. The increasing number of low-cost footwear manufacturers presents a challenge in maintaining market share, particularly in price-sensitive consumer segments.
- Raw Material Price Volatility: The company is exposed to fluctuations in raw material prices, such as rubber and leather. Any rise in material costs could squeeze profit margins, particularly in the budget-friendly product range that Relaxo focuses on for mass-market appeal.
- Limited Global Presence: While Relaxo Footwears enjoys a strong presence in India, its international footprint is relatively limited. Expanding its reach beyond domestic markets presents challenges in terms of brand recognition and adapting to diverse global customer preferences.
- Dependence on Domestic Market: The company heavily depends on the Indian market for its revenue. Any downturn in the domestic economy, changes in consumer behavior, or regional disruptions could negatively affect Relaxo’s financial performance, making it more vulnerable to local market conditions.
- Challenges in Innovation: Relaxo Footwear faces the constant pressure to innovate and offer new styles and designs to stay relevant. With changing fashion trends and consumer demands, the company must continuously invest in research and development to maintain consumer interest and loyalty.
Advantages and Disadvantages of Investing in Bata India
Bata India Ltd
The primary advantage of Bata India Ltd lies in its strong brand recognition and wide market presence. With decades of trust, it has established itself as a leading footwear retailer, offering a range of products across various price points.
- Brand Strength and Loyalty
Bata India has built a strong brand over the years, synonymous with quality and comfort. This brand loyalty ensures a steady consumer base, which drives repeat business and solidifies Bata’s position as a trusted footwear provider in India. - Wide Distribution Network
With an extensive network of retail stores across India, Bata India ensures easy access to its products. Additionally, the company has strengthened its e-commerce platform, providing customers with seamless online and offline shopping experiences, expanding its reach. - Diverse Product Range
Bata offers a diverse product range that caters to different segments of the market. From budget-friendly options to premium footwear, the company ensures it meets the varying needs of its customers, making it a versatile choice for all demographics. - Focus on Innovation
Bata consistently invests in product innovation to meet the evolving needs of consumers. By incorporating new designs, materials and technology in its footwear, Bata keeps its products modern and in line with current trends, ensuring long-term market appeal. - Strong Financial Performance
Bata India has demonstrated consistent financial performance over the years. The company’s ability to generate stable revenues and maintain profitability, along with its expanding footprint, ensures that it remains competitive in India’s dynamic footwear industry.
The main disadvantage of Bata India Ltd lies in its dependence on the domestic market and the highly competitive footwear industry. While it has a strong brand presence, the company faces constant pressure from both local and international footwear brands.
- Intense Competition
Bata faces stiff competition from both established local footwear brands and international players. The growing presence of global footwear brands and online retailers adds pressure, forcing Bata to constantly innovate to maintain its market share. - Limited Global Expansion
Although Bata is a household name in India, its international presence is limited compared to other footwear giants. Expanding its footprint in global markets may prove challenging due to local consumer preferences and strong competition in those regions. - Rising Raw Material Costs
Bata is vulnerable to fluctuations in raw material prices, particularly leather and rubber. Any increase in these costs could negatively impact profit margins, especially as Bata focuses on providing affordable footwear options to a wide range of consumers. - Shift in Consumer Preferences
Consumer preferences are increasingly shifting towards fashionable, trendy footwear at affordable prices. Bata needs to adapt quickly to these changing demands to stay relevant, which requires ongoing investments in design innovation and new product lines to appeal to younger consumers. - Economic Sensitivity
Bata’s business is sensitive to economic fluctuations, especially in the domestic market. During periods of economic slowdown, consumer spending on non-essential items, such as footwear, tends to decrease, which could affect Bata’s revenue and overall performance.
How to Invest in Bata India and Relaxo Footwear Stocks?
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- Log in to Alice Blue and navigate to the Funds section.
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Step 3: Search & Analyze Bata India and Relaxo Footwear Stocks
- Use the search bar to find Bata India and Relaxo Footwear Stocks.
- Review the stock’s market price, charts and company insights before making a decision.
Step 4: Place Your Buy Order
- Click “Buy” and select either a Market Order (instant purchase) or a Limit Order (buy at a specified price).
- Enter the quantity and confirm your order to complete the purchase.
Relaxo Footwears vs. Bata India Limited- Conclusion
Relaxo Footwears is known for its affordable and comfortable footwear, with a strong domestic presence and significant growth potential. However, it faces challenges like intense competition and dependency on the domestic market. Its focus on innovation and affordability positions it well for the value-conscious consumer segment.
Bata India Ltd enjoys strong brand recognition and a wide market reach, offering diverse product ranges. While it has solidified its presence in India, it faces competition from both local and international brands. Bata’s challenges include adapting to changing consumer preferences and expanding its global footprint.
Relaxo Footwears vs. Bata India – FAQ
1. What is Relaxo Footwears Ltd?
Relaxo Footwears Ltd is an Indian company specializing in the manufacturing and retailing of footwear. Founded in 1976, it offers a wide range of products, including sandals, slippers and sports shoes, catering to diverse customer needs. The brand is known for its quality, comfort and affordability.
2. What is Bata India Ltd?
Bata India Ltd is a leading footwear company in India, known for manufacturing and retailing a wide range of footwear products for men, women and children. Established in 1931, it is part of the Bata Shoe Organization and offers stylish and affordable options for various customers.
3. What are Footwear Stocks?
Footwear stocks represent shares of companies in the footwear industry, including manufacturers and retailers of shoes, boots, sandals and other types of footwear. These stocks attract investors interested in the growth potential of the global footwear market, which is driven by consumer demand, fashion trends and increasing disposable income.
4. Who is the CEO of Relaxo Footwears Ltd?
Mr. Ramesh Kumar Dua serves as the Chairman and Managing Director of Relaxo Footwears Ltd., leading the company with extensive experience in strategy, sales, marketing, production and new product development.
5. What are the main competitors of Relaxo Footwears and Bata India?
Relaxo Footwears Ltd. and Bata India Ltd. face competition from brands like Khadim India Ltd., Liberty Shoes Ltd., Metro Brands Ltd. and Mirza International Ltd., all contributing to India’s diverse footwear market.
6. What Is The Net Worth Of Bata India Vs Relaxo Footwears Ltd?
As of March 2023, Relaxo Footwears Ltd. reported net sales of ₹2,782.8 crore, while Bata India Ltd. achieved ₹3,451.6 crore, indicating Bata India’s higher revenue.
7. What Are The Key Growth Areas For Relaxo Footwear?
Relaxo Footwears Limited specializes in non-leather products, including slippers, shoes and sandals under brands like Relaxo, Flite, Sparx and Bahamas, distributing through retail outlets, exports, e-commerce and modern trade.
8. What Are The Key Growth Areas For Bata India Limited?
Bata India Limited offers a wide range of footwear, including canvas, rubber, leather and plastic, catering to various demographics, with brands like Hush Puppies and Dr. Scholl licensed from global partners.
9. Which Company Offers Better Dividends, Relaxo Footwear or Bata India?
Bata India Limited offers a higher dividend yield of approximately 1.61% compared to Relaxo Footwears Limited’s 0.77%. Additionally, Bata India has a dividend payout ratio of 58.8%, while Relaxo’s is 37.3%.
10. Which Stock Is Better For Long-term Investors, Relaxo Footwears Or Bata India?
Over the past year, Relaxo Footwears Limited’s stock has declined by approximately 34.86%, while Bata India Limited’s stock has decreased by about 14.73%. However, over the past five years, Relaxo’s stock has shown a compound annual growth rate (CAGR) of 1.95%, outperforming Bata’s 5-year CAGR of -5.28 %.
11. Which Sectors Contribute Most To Relaxo Footwears And Bata India’s Revenue?
Relaxo Footwears Limited specializes in non-leather products, including slippers, shoes and sandals, distributing through retail outlets, exports, e-commerce and modern trade. Bata India Limited offers a wide range of footwear, including canvas, catering to various demographics, with brands like Hush Puppies and Dr. Scholl licensed from global partners.
12. Which Stocks Are More Profitable, Relaxo Footwear or Bata India?
In terms of profitability, Relaxo Footwears Ltd has demonstrated stronger performance with a higher net profit margin of around 14.2% in FY24 compared to Bata India’s margin of approximately 7.8%. Relaxo’s consistent growth and efficient operations have made it a more profitable stock in recent years.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
