CMP: 340

Relaxo Footwears Ltd. is the marketing company for Relaxo Group. The Group manufactures Hawai and lightweight chappals.

Relaxo Footwears is a budding small-cap stock. It trades at a P/E of 17 with decent dividend yields. It runs at a debt of 183 Crores with 2 Crores Cash in hand. Debt to Profits ratio of nearly 5 makes it risky. Aggressive Growth makes it even to a certain extent. Revenues have risen from 201 Crores to 558 Crores in the last 5 years. Profits have risen from 3 Crores to 38 Crores in the last 5 years. NPM has risen from less than 2% to almost 7% which is amazing. Buy with minimal exposure and hold for long term.