2QFY2013 Result Update | Footwear

November 6, 2012

Relaxo Footwear
Financial Performance
Y/E March (` cr) Total Income EBITDA EBITDA margin (%) Reported PAT
Source: Company, Angel Research

BUY
CMP Target Price
% chg (yoy) 21.6 53.1 204 139.4 1QFY2013 248 30 12.1 15 % chg (qoq) (2.5) (20.3) (221) (31.7)

`803 `933
12 Months

2QFY2013 242 24 9.9 10

2QFY2012 199 16 7.9 4

Investment Period
Stock Info Sector Market Cap (` cr) Beta Net debt (` cr) 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Relaxo Footwear (Relaxo) reported lower than expected numbers for 2QFY2013. The revenue for the quarter stood at `242cr marginally lower than our expectation of `248cr, while it grew by 21.6% yoy from `199cr in 2QFY2012. The EBITDA margin witnessed an expansion of 204bp yoy to 9.9% during the quarter; however, it was lower than our expectation of 12.5%. Subsequently, the profit for the quarter grew by 139.4% yoy (on a lower base of `4cr for 2QFY2012) at `10cr, which was 32.9% lower than our estimate of `15cr. Expansion plans and brand revamp to drive volume: The company is in an expansion mode and plans to incur a capex of `60cr for building up a PU (Polyurethane) footwear plant (expected to get completed by FY2013) and `25cr for building a warehouse (to be completed by FY2014E). In addition, the company plans to open 25-30 retail stores each year. It has also roped in leading celebrities for endorsement of its brands - Salman Khan for Hawaii, Katrina Kaif for Flite and Akshay Kumar for Sparx. We expect capacity expansion and aggressive marketing to complement each other and drive volume. Outlook and valuation: We expect Relaxo to post a revenue CAGR of 18.5% over FY2012-14E to `1,208cr with an operating margin of 12.5% in FY2014E. The PAT is expected to grow at a CAGR of 41.6% to `80cr for the same period. At the current market price, Relaxo is trading at 12.0x FY2014E earnings. We maintain our Buy recommendation on the stock with a revised target price of `933, based on a target PE of 14x for FY2014E.

Footwear 963 0.7 144 908 / 235 2,548 5 18,817 5,724 RLXO.BO RLXF IN

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 75.0 16.0 1.3 7.8

Abs.(%) Sensex Relaxo

3m 7.8 51.2

1yr 6.8

3yr 16.8

94.0 749.4

Key financials
Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 554 35.9 38 160.2 13.8 31.4 25.5 8.8 41.0 21.8 2.0 14.5

FY2011 686 23.9 27 (28.8) 9.6 22.4 35.8 7.2 22.0 14.3 1.6 16.9

FY2012 860 25.4 40 48.5 10.5 33.3 24.1 5.6 26.0 19.5 1.3 12.3

FY2013E 1,019 18.5 56 41.2 11.0 47.0 17.1 4.2 28.2 21.7 1.1 9.9

FY2014E 1,208 18.5 80 42.0 12.5 66.7 12.0 3.2 30.1 25.4 0.9 7.3

Tejashwini Kumari
30940000 ext: 6856 tejashwini.kumari@angelbroking.com

Please refer to important disclosures at the end of this report

1QFY2013 Result Update | Relaxo Footwear

Exhibit 1: 2QFY2012 performance

Y/E March (` cr) Net Sales Net raw material (% of Sales) Staff Costs (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM Interest Depreciation Other Income PBT (% of Sales) Tax (% of PBT) Reported PAT PATM Equity capital (` cr) EPS (`)
Source: Company, Angel Research

2QFY2013 242 115 47.3 37 15.4 66 27.4 218 24 9.9 4 6 1 15 6.2 5 31.5 10 4.3 6 17.2

2QFY2012 199 108 54.1 26 12.9 50 25.1 184 16 7.9 5 6 1 6 3.1 2 29.8 4 2.2 6 7.2

% chg (yoy) 21.6 6.3 45.1 32.6 18.9 53.1 204 bp (19.0) 6.6 3.5 145.2 158.6 139.4

1QFY2013 248 120 48.3 37 15.0 61 24.6 218 30 12.1 4 6 2 22 8.9 7 31.8 15 6.1 6

% chg (qoq) (2.5) (4.3) (0.1) 8.6 0.0 (20.3) (221)bp 0.4 6.1 (31.2) (31.9) (32.5) (31.7)

HY2013 491 234 47.8 75 15.2 128 26.0 437 54 11.0 8 12 3 37 7.6 12 31.6 25 5.2 6

HY2012 414 225 45.9 51 10.5 99 20.2 375 39 9.3 10 12 3 20 4.1 5 25.6 15 3.1 6 25.2

% chg 18.5 4.2 45.2 28.8 16.3 39.7 167bp (17.8) 5.1 12.9 82.9 125.8 68.1

139.4

25.1

(31.7)

42.3

68.1

Revenue marginally lower, however operating performance disappointed

Relaxo reported revenue of `242cr, 21.6% higher yoy, marginally lower than our expectation of `248cr. The EBITDA margin witnessed an expansion of 204bp yoy to 9.9% during the quarter; however, it was lower than our expectation of 12.5%. On sequential basis, the operating margin contracted by 221bp from 12.1% in 1QFY2013 on account of higher other expenses as a percentage of net sales (mainly advertisement expense). Subsequently, the profit for the quarter grew by 139.4% yoy (on a lower base of `4cr for 2QFY2012) at `10cr and declined by 31.7% on sequential basis; against our estimate of `15cr.

Exhibit 2: Actual vs. Estimate

Y/E March (` cr) Net sales EBITDA EBITDA margin (%) Reported PAT
Source: Company, Angel Research

1QFY13 242 24 9.9 10

Angel est. 248 31 12.5 15

% diff (2.2) (22.4) (258)bp (32.9)

November 6, 2012

1QFY2013 Result Update | Relaxo Footwear

Exhibit 3: Revenue trend

300 250 200 (` cr) 150 100 182 50 0 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 13.3 10.3 201 215 199 204 242 248 242 25.6 37.4 39.5 33.5 21.8 15.6 21.6 45 40 35 30

Exhibit 4: Margin declined due to higher ad expense

35 30 25 (` cr) (%) 20 15 10 20 14 17 23 16 18 33 30 5 0 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 24.0 11.0 9.1 8.5 10.7 7.9 8.6 13.7 12.1 9.9 16 14 12 10 8 6 4 2 0 (%)

25 20 15 10 5 0

154

Revenue (LHS)

yoy growth (RHS)

EBITDA (LHS)

EBITDA margin (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Investment rationale
Aggressive capacity expansion plans
The company is planning to incur a capex of `60cr for the construction of a PU (Polyurethane) footwear plant which is expected to be completed by the end of FY2013E. With this plant getting operational, the companys total capacity will go up by ~30,000 pairs per day which is currently 3.70 lakh pairs per day. In addition, it is planning to construct a warehouse, expected to be completed by FY2014E with a capex of `25cr. Retail store expansion to enhance brand visibility : Further, the company has aggressive retail expansion plans to open 25-30 retail stores (Relaxo Shoppe) every year which will help in increasing direct reach to customers, brand building and increase in sales. Presently, the number of exclusive stores stands at 158, which was 149 at the end of FY2012.

Brand revamping to boost growth

The company is promoting its brands aggressively to increase their visibility. For that, it has roped in three Bollywood stars for the endorsement - Salman Khan to endorse Hawaii, Katrina Kaif to endorse Flite and Akshay Kumar to endorse Sparx. This is expected to help the company to maintain its market share in the mass segment through Hawaii brand and further penetrate the lower and upper-middle class segment through existing products and upcoming launches of Flite and Sparx brands. Also, as a part of aggressive branding initiatives, the company is advertising through print media (newspapers and magazines) as well as television media (general entertainment, news, movies and regional channels).

November 6, 2012

1QFY2013 Result Update | Relaxo Footwear

Exhibit 5: Brand show all the way

Brand Hawaii Flite Sparx
Source: Company, Angel Research

Celebrity Salman Khan Katrina Kaif Akshay Kumar

Changing revenue mix to drive profit

With the changing revenue mix, the profitability is expected to improve in the coming years. Sparx has increased its contribution from a mere 4.2% in FY2008 to 24.3% in FY2011; on the other hand, Flite has maintained its contribution at ~2530%. Hawaii, being a mass brand, adds to the volume, however, Sparx and Flite help in improving the companys profitability. Going forward we expect the mix to further improve with the new ads and celebrity endorsements, which will help in increasing brand visibility. The company is also planning to launch new products in the high margin segment.

Exhibit 6: Sales break up Brand-wise

100.0 14.7 80.0 60.0 40.0 20.0 0.0 FY2008 FY2009 Hawaii Flite Sparx FY2010 Others* FY2011 49.2 44.4 40.8 35.5 4.2 31.9 18.9 7.5 29.1 15.1 15.3 28.9 14.5 24.3

(%)

25.8

Source: Company, Note: * Others includes - Other brands, outsourced, & traded goods

November 6, 2012

1QFY2013 Result Update | Relaxo Footwear

Financial performance
Assumptions
Exhibit 7: Key assumptions
FY2013E Volume Growth (%) Realisation Growth (%) Change in raw material prices (%) Ethyl Vinyl Acetate (EVA) Rubber
Source: Angel Research

FY2014E 15.2 3.0 2.0 2.0

15.2 3.0 (6.0) (6.0)

Exhibit 8: Change in estimates

Y/E March (` cr) Net sales OPM (%) Adj. PAT
Source: Angel Research

Earlier estimates FY2013E 1,019 12.3 61 FY2014E 1,208 13.0 82

Revised estimates FY2013E FY2014E 1,019 11.0 56 1,208 12.5 80

% chg FY2013E 0.0 (131)bp (7.9) FY2014E 0.0 (47)bp (2.5)

We expect the companys revenue to grow at a CAGR of 18.5% over FY2012-14E, from `860cr in FY2012 to `1,208cr in FY2014E, mainly on the back of growth triggers, which includes 1) capacity expansion plan, 2) store expansion, 3) improved sales mix and 4) brand revamping. With the cooling off of raw material prices, we expect the raw material cost as a percentage of sales to decline from 54.4% in FY2012 to 47.6% in FY2014E. Simultaneously, we expect employee cost and other expenses to increase on account of expansion and advertisement spending respectively. We expect a 208bp expansion in the operating margin to 12.5% in FY2014E mainly on account of fall in raw material prices and improvement in value mix (Sparx and Flite contributing to ~60% of sales). The companys profit is expected to grow at a CAGR of 41.6% over FY2012-14E, from `40cr in FY2012 to `80cr in FY2014E.

November 6, 2012

1QFY2013 Result Update | Relaxo Footwear

Exhibit 9: Revenue to be driven by volume growth

1,400 1,200 1,000 800
( ` cr)

Exhibit 10: Margin to rebound with decreasing RM price

40 160 140 120 100 10.3 10.1 13.8 9.6 10.5 11.0 16 12.5 14 12 10 8 6 4

33.3 29.6

35.9 25.4 18.5 18.5

23.9

30 20 10 0

( ` cr)

600
1,019 1,208

80 60 40

(%)

(%)

400
306 407 554 686

112

31

41

76

66

0
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

90

20

151

200

860

2 0

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013E

Revenue (LHS)

Revenue growth (RHS)

EBITDA (LHS)

EBITDA margin (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Outlook and valuation

Relaxo is poised for growth with triggers like 1) capacity expansion plan, 2) store expansion, 3) improved sales mix and 4) brand revamping. On the back of these, we expect Relaxo to post a revenue CAGR of 18.5% over FY2012-14 to `1,208cr with an operating margin of 12.5% in FY2014. The PAT is expected to grow at a CAGR of 41.6% to `80cr for the same period. At the current market price, Relaxo is trading at 12.0x FY2014E earnings. We maintain our Buy recommendation on the stock with a revised target price of `933, based on a target PE of 14x for FY2014E.

Exhibit 11: One-year forward PE

1000 800 600 (` ) 400 200 0 Dec-09 Mar-11 Aug-11 Apr-08 Jul-09 Feb-09 Sep-08 Oct-10 May-10 Nov-12 Jan-12 16x Jun-12

Price (`)

4x

8x

12x

Source: Company, Angel Research

November 6, 2012

FY2014E

1QFY2013 Result Update | Relaxo Footwear

Exhibit 12: Comparative analysis

Company Relaxo footwear Bata India* Year end FY2013E FY2014E CY2012E CY2013E Mcap (` cr) 963 963 5,557 5,557 Sales (` cr) 1,019 1,208 1,858 2,206 OPM (%) 11.0 12.5 15.1 16.2 PAT (` cr) 56 80 173 226 EPS (`) 47.0 66.7 26.8 35.2 RoE (%) 28.2 30.1 27.2 29.0 P/E (x) 17.1 12.0 32.2 24.6 P/BV (x) 4.2 3.2 8.0 6.4 EV/EBITDA (x) 9.9 7.3 18.7 14.1 EV/Sales (x) 1.1 0.9 2.9 2.5

Source: Company, Angel Research, *Bloomberg

November 6, 2012

1QFY2013 Result Update | Relaxo Footwear

Risks
Rise in raw material prices and depreciating rupee
The prices of key raw materials EVA and rubber had reached their peak in the last financial year to ~`149/kg and ~`243/kg respectively, which impacted the operating margin. However, the prices of both the raw materials have started declining, with the current price for rubber at ~177/kg and EVA at ~`110/kg. Any rise in the prices can put margins under pressure. Also, Relaxo imports its entire EVA requirement, so any further depreciation in the rupee can pose a risk to the operating margin and thereby impact the profitability of the company.

Exhibit 13: Depreciating rupee a concern for EVA cost

58 56 54 52.26 54.5

US D/INR

52 50 48 46 44 42 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12

Source: Angel Research, Bloomberg

Competition from both branded and unorganised sector

Relaxo competes with both branded as well as the unorgansied market. Hawaii, the mass product faces stiff competition from the unorganised market. On the other hand, Sparx faces competition from branded shoes. The company has priced its products considering competition. Any price cut by competitors can put pressure on Relaxos sales and margin.

The company
Relaxo is a key player in the retail footwear industry, with a strong foothold in the slippers market and a strong distribution channel of 700 distributors and more than 46,000 retailers. The company presently has 158 company-owned outlets across India, with a concentrated presence in Delhi, Rajasthan, Gujarat, Haryana, Punjab, Uttar Pradesh and Uttarakhand. It has nine manufacturing plants, seven in Bahadurgarh (Haryana) and one each in Bhiwadi (Rajasthan) and Haridwar (Uttaranchal). Currently, the company sells its products under three major brands Hawaii, Flite and Sparx.

November 6, 2012

1QFY2013 Result Update | Relaxo Footwear

Profit & Loss Statement (Standalone)

Y/E March (` cr)
Total operating income % chg Net Raw Materials % chg Other Mfg costs % chg Personnel % chg Other % chg Total Expenditure EBITDA % chg (% of Net Sales) Depreciation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of sales) Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg Dividend Retained Earning FY2010 554 35.9 290 33.0 33 (34.3) 55 65.7 99 52.8 477 76 85.2 13.8 15 61 98.0 11.0 11 4 0.7 50 132.0 (0.0) 54 16 30.0 38 38 160.2 6.8 31.4 31.4 160.2 2 36 FY2011 686 23.9 375 29.4 43 31.8 74 34.5 127 27.6 620 66 (13.2) 9.6 21 45 (25.5) 6.6 16 6 0.9 30 (40.5) 0.0 36 9 24.7 27 27 (28.8) 3.9 22.4 22.4 (28.8) 2 25 FY2012 860 25.4 459 22.3 55 26.8 106 42.6 150 18.6 770 90 35.9 10.5 23 67 47.7 7.8 19 5 0.6 48 62.8 0.0 53 14 25.4 40 40 48.5 4.6 33.3 33.3 48.5 2 38 FY2013E 1,019 18.5 495 7.9 65 19.1 153 44.0 194 28.9 907 112 24.6 11.0 23 89 32.7 8.7 17 6 0.6 72 48.6 0.0 78 21 27.5 56 56 41.2 5.5 47.0 47.0 41.2 2 55 FY2014E 1,208 18.5 558 12.5 82 25.9 184 20.1 233 20.4 1056 151 35.1 12.5 28 124 39.3 10.2 17 7 0.6 106 48.7 0.0 113 33 29.2 80 80 42.0 6.6 66.7 66.7 42.0 2 78

November 6, 2012

1QFY2013 Result Update | Relaxo Footwear

Balance Sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Other Long Term Liabilities Long Term Provisions Deferred Tax (Net) Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Lease adjustment Goodwill Investments Long Term Loans and adv. Other Non-current asset Current Assets Cash Loans & Advances Inventory Debtors Other current assets Current liabilities Net Current Assets Misc. Exp. not written off Total Assets 286 64 222 7 0 0 0 116 1 27 67 21 0 69 47 0 275 353 84 268 1 0 11 0 158 2 16 117 23 1 123 35 0 316 379 108 272 21 0 12 1 169 1 15 128 23 2 131 38 0 344 455 131 324 20 0 12 1 221 4 17 169 28 3 169 52 0 409 532 159 374 20 0 12 1 263 10 20 196 33 4 182 81 0 487 6 104 110 147 0 0 18 275 6 129 135 156 0 2 22 316 6 166 172 146 0 3 22 344 6 221 227 156 0 4 22 409 6 299 305 156 0 4 22 487 FY2010 FY2011 FY2012 FY2013E FY2014E

November 6, 2012

10

1QFY2013 Result Update | Relaxo Footwear

Cash Flow (Standalone)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Direct taxes paid Others Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments (Inc.)/Dec. in LT loans & adv. Others Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2010 54 15 (16) (16) 34 72 (80) 0 0 (5) (85) 0 39 (2) (25) 11 (2) 3 1 FY2011 36 21 13 (9) 36 97 (62) 0 11 (12) (63) 0 10 (2) (41) (33) 1 1 2 FY2012 53 23 (4) (14) (5) 54 (46) 0 1 3 (42) 0 (11) (2) 0 (13) (1) 2 1 FY2013E 78 23 (11) (21) (6) 63 (75) 0 0 7 (68) 0 10 (2) 0 8 3 1 4 FY2014E 113 28 (23) (33) (7) 79 (77) 0 0 7 (70) 0 0 (2) 0 (2) 6 4 10

November 6, 2012

11

1QFY2013 Result Update | Relaxo Footwear

Standalone Key Ratios

Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover Inventory / Sales (days) Receivables (days) Payables (days) WC (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 1.3 1.9 5.5 1.1 2.3 2.9 0.8 1.6 3.6 0.7 1.4 5.2 0.5 1.0 7.2 2.3 35 13 44 25 2.1 49 12 57 21 2.4 52 10 60 14 2.4 53 10 68 14 2.4 55 10 63 17 21.8 22.4 41.0 14.3 14.5 22.0 19.5 20.8 26.0 21.7 23.1 28.2 25.4 27.0 30.1 11.0 0.7 2.0 15.7 5.3 1.4 29.6 6.6 0.8 2.2 10.9 7.5 1.2 15.0 7.8 0.7 2.7 15.5 9.6 1.0 21.4 8.7 0.7 2.6 16.7 8.0 0.8 23.3 10.2 0.7 2.6 19.1 7.8 0.6 25.6 31.4 31.4 44.3 1.5 91.6 22.4 22.4 39.9 1.5 112.2 33.3 33.3 52.5 1.5 143.7 47.0 47.0 66.4 1.5 189.1 66.7 66.7 89.9 1.5 254.3 25.5 18.1 8.8 0.2 2.0 14.5 4.0 35.8 20.1 7.2 0.2 1.6 16.9 3.5 24.1 15.3 5.6 0.2 1.3 12.3 3.2 17.1 12.1 4.2 0.2 1.1 9.9 2.7 12.0 8.9 3.2 0.2 0.9 7.3 2.3 FY2010 FY2011 FY2012 FY2013E FY2014E

November 6, 2012

12

1QFY2013 Result Update | Relaxo Footwear

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Relaxo Footwear No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

November 6, 2012

13