Relaxo Footwear | Keep adding to positions
Relaxo footwear is in stiff operator grip. Wish I had spotted it early at 25 Rs and cornered a big pie of equity. Nevertheless, I consider this to be a bargain even after the run up. Expected sales in FY 12-13 years are 1000+ crores and bottom line, north of 100+ crores. A humble 10 P/E multiple would give it a valuation of 5x times current market price. And institutional interest can give this mesmerising beauty a multiple of 20x-30x for those who pay with hindsight. As is said, “One learns by looking backwards but life must be lived forwards”. My Telescope see this company to reward its shareholders handsomely.
Look what has happened to the Page Industries and TTK Prestige after institutions tried to get their foot through the narrow door in 2009. Best Peter Lynch quality of Relaxo is that institutions have yet to discover this story. No maverick fund manager has mustered the courage till date to step forward with Relaxo as part of her portfolio. Zebras as they are, what wise do first herd shall follow later. Stay tuned and keep adding to Relaxo positions to make a tonne and laugh all the way to bank. As a wise man said, ‘Your patience will be tested but thy conviction shall be rewarded’. I pray it stays undiscovered a wee while longer so I can keep adding.