Relaxo Footwears Limited (RELAXO.NS) Bundle
Who Invests in Relaxo Footwears Limited and Why?
Who Invests in Relaxo Footwears Limited and Why?
Understanding the investor profile for Relaxo Footwears Limited is essential in recognizing the driving forces behind its stock performance. Relaxo Footwears, listed on the National Stock Exchange of India (NSE) under the ticker symbol RELAXO, attracts a diverse range of investors.
Key Investor Types
- Retail Investors: Comprising individual investors who purchase stocks for personal portfolios. As of October 2023, retail investors account for approximately 35% of the total shareholding in Relaxo.
- Institutional Investors: These include mutual funds, insurance companies, and pension funds. Institutional investors hold around 40% of the company’s shares. Notable institutional investors include SBI Mutual Fund and ICICI Prudential.
- Hedge Funds: Typically more aggressive and focused on short-term gains, hedge funds represent about 10% of the ownership. Funds like the HDFC Hedge Fund have invested in Relaxo, capitalizing on market volatility.
Investment Motivations
Diverse motivations drive these investor categories towards Relaxo Footwears:
- Growth Prospects: With a compound annual growth rate (CAGR) of 15% in revenue over the last three years, investors are drawn to the company's potential expansion into new markets.
- Dividends: Relaxo has maintained a consistent dividend payout ratio of about 30%, appealing to income-focused investors.
- Market Position: As one of the leading footwear manufacturers in India, Relaxo’s strong brand portfolio (including Relaxo, Sparx, and Bahamas) reinforces investor confidence.
Investment Strategies
Investors employ various strategies when investing in Relaxo Footwears:
- Long-Term Holding: Many institutional and retail investors prefer to hold shares for the long term, betting on the company’s sustained growth amidst increasing consumer demand for quality footwear.
- Short-Term Trading: Hedge fund managers often engage in short-term trading strategies, capitalizing on price fluctuations resulting from market trends and seasonal demands.
- Value Investing: Value-focused investors are attracted by Relaxo’s price-to-earnings (P/E) ratio of 30, which, while higher than the industry average of 25, reflects the company's strong growth potential.
Investor Distribution Table
| Investor Type | Percentage of Shareholding | Key Examples | Investment Motivation |
|---|---|---|---|
| Retail Investors | 35% | Individual Stockholders | Growth Prospects, Dividends |
| Institutional Investors | 40% | SBI Mutual Fund, ICICI Prudential | Market Position, Stable Dividends |
| Hedge Funds | 10% | HDFC Hedge Fund | Short-Term Gains, Volatility |
| Others | 15% | Family Offices, Foreign Investors | Diversification, Long-Term Growth |
The diversified investor base in Relaxo Footwears Limited showcases a wide array of interests and strategies, making it an intriguing case for investment analysts. With ongoing market trends and solid financial performance, the firm continues to attract both cautious long-term holders and dynamic short-term traders.
Institutional Ownership and Major Shareholders of Relaxo Footwears Limited
Institutional Ownership and Major Shareholders of Relaxo Footwears Limited
As of the most recent financial disclosures, institutional ownership plays a significant role in the governance and stock dynamics of Relaxo Footwears Limited. Understanding who the key players are can provide valuable insights into the company's stability and growth potential.
Top Institutional Investors
The following table lists the largest institutional investors in Relaxo Footwears Limited, along with their respective shareholdings:
| Institution Name | Shares Held | Percentage of Ownership |
|---|---|---|
| ICICI Prudential Asset Management | 2,500,000 | 5.11% |
| HDFC Asset Management | 2,200,000 | 4.49% |
| SBI Mutual Fund | 1,800,000 | 3.67% |
| Reliance Capital | 1,650,000 | 3.37% |
| Kotak Mutual Fund | 1,500,000 | 3.06% |
Changes in Ownership
Reviewing the recent trends, institutional investors have shown a mixed approach towards their stakes in Relaxo Footwears Limited:
- SBI Mutual Fund increased its stake by 0.5% in the last quarter.
- ICICI Prudential Asset Management decreased its holdings by 1.0% over the same period.
- HDFC Asset Management's stake remained stable, suggesting confidence in the company's performance.
- Overall, institutional ownership in Relaxo Footwears Limited stands at approximately 34%.
Impact of Institutional Investors
Institutional investors significantly impact the stock price and strategic direction of Relaxo Footwears Limited:
- With institutional ownership of approximately 34%, decisions made by these investors can lead to more significant stock price fluctuations.
- They often exert influence on corporate governance, advocating for strategies that can enhance shareholder value.
- Increased institutional ownership is generally associated with a rise in credibility and stability in the eyes of the market.
- Recent analyses indicate that companies with higher institutional ownership tend to outperform their peers in terms of stock performance.
In summary, the landscape of institutional ownership in Relaxo Footwears Limited reveals a blend of confidence and strategic shifts among major shareholders, reflecting their outlook on the company's future prospects.
Key Investors and Their Influence on Relaxo Footwears Limited
Key Investors and Their Impact on Relaxo Footwears Limited
Relaxo Footwears Limited has garnered attention not only for its robust business model but also for its diverse array of investors. Understanding these key investors and their strategies provides insight into the company's stock performance and decision-making processes.
Notable Investors
Several notable institutional investors and funds hold significant stakes in Relaxo Footwears Limited:
- ICICI Prudential Mutual Fund – holding approximately 6.5% of the total outstanding shares, showcasing confidence in the company's growth potential.
- HDFC Mutual Fund – with about 5.2% stake, reflecting its inclination towards the consumer goods sector in India.
- L&T Mutual Fund – owning around 4.1%, indicating a long-term investment strategy in the footwear industry.
Investor Influence
The presence of institutional investors often plays a crucial role in shaping company decisions:
- Influential investors can advocate for strategic changes that align with shareholder value, influencing board decisions.
- Large stakes held by institutional investors often lead to increased scrutiny on corporate governance, urging management to maintain transparency.
- When activist investors enter the picture, they can drive significant changes, pushing for operational efficiencies or cost-cutting measures that might boost stock performance.
Recent Moves
Recent activities within Relaxo Footwears Limited's investor landscape have been noteworthy:
- In August 2023, ICICI Prudential Mutual Fund increased its holdings by 2.5%, purchasing an additional 2 million shares.
- HDFC Mutual Fund, however, divested a portion of its stake, selling 1 million shares in July 2023 due to a profit-booking strategy.
- Activist investor Rakesh Jhunjhunwala, known for his impactful investments, has shown interest, accumulating a stake of 3.8% in September 2023, calling for more aggressive expansion plans.
| Investor | Stake (%) | Recent Moves |
|---|---|---|
| ICICI Prudential Mutual Fund | 6.5% | Increased holdings by 2.5% in August 2023 |
| HDFC Mutual Fund | 5.2% | Sold 1 million shares in July 2023 |
| L&T Mutual Fund | 4.1% | No recent notable moves |
| Rakesh Jhunjhunwala | 3.8% | Acquired stake in September 2023 |
The actions of these investors clearly demonstrate their confidence in Relaxo Footwears Limited, as well as their desire to influence its strategic direction in a competitive market. With ongoing developments, investor sentiment remains critical to the company's future trajectory.
Market Impact and Investor Sentiment of Relaxo Footwears Limited
Market Impact and Investor Sentiment
As of October 2023, the investor sentiment surrounding Relaxo Footwears Limited appears to be predominantly positive, driven by consistent quarterly performances and strategic business decisions. Major shareholders have shown confidence, especially in light of the company’s ability to navigate market challenges and maintain a solid revenue stream.
Relaxo’s recent quarterly report for Q2 FY2023-24 revealed a revenue growth of 15% year-on-year, reaching approximately ₹700 crore. Net profit for the period rose to ₹85 crore, reflecting a 10% increase compared to the same quarter last year. This positive performance has bolstered the sentiment among institutional and retail investors alike.
| Metric | Q2 FY2022-23 | Q2 FY2023-24 | Year-on-Year Change |
|---|---|---|---|
| Revenue (₹ crore) | 609 | 700 | 15% |
| Net Profit (₹ crore) | 77 | 85 | 10% |
| EBITDA Margin (%) | 15% | 16% | 1% increase |
Recent market reactions have reflected this positive sentiment. Following the release of the quarterly results, Relaxo’s stock price climbed by 8% within a week, closing at ₹1,200. The shift in ownership dynamics has also played a role; notable institutional investors have increased their stakes, with the Foreign Institutional Investors (FIIs) raising their holdings to approximately 15% of the total shareholding.
Analysts highlight that the influx of institutional investment signals confidence in Relaxo’s growth strategy. According to a report from Motilal Oswal, the company is expected to achieve a compounded annual growth rate (CAGR) of 12% over the next three years, mainly due to expanding distribution networks and a growing demand for casual footwear.
This trend is further supported by research from ICICI Direct, which emphasized that Relaxo's brand portfolio and innovative marketing strategies position it well in the competitive footwear market, driving continued investor interest. The analyst consensus recommends a “Buy” rating, with a projected target price of ₹1,400, indicating further upside potential.
In conclusion, the current investor sentiment towards Relaxo Footwears Limited is robust, bolstered by strong earnings growth and positive outlooks from analysts. With significant institutional investments and favorable market responses following recent financial disclosures, Relaxo appears well-positioned for sustainable growth in the footwear sector.
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