The Best stocks for swing trading this week are –
| Relaxo Footwears Ltd. | Marico |
| Relaxo Footwears Ltd can rise up to 31% approx from the current price in the upcoming days. | Marico can show an upside movement of 22% approx from the current price in the upcoming days. |
As we have explained repeatedly in our previous articles, swing trading strategies have a big potential for gaining profits.
Must Read –
| Relaxo Footwears Ltd. | Marico |
| Relaxo Footwears Ltd. has recently posted good quarterly results with Revenue Growth of 5% to – 713 Cr. and PAT (Profit after Tax) growth of 28% year-on-year basis to 39 Cr. | Marico has recently posted good quarterly results with a Net Profit Growth of 15.9% year-on-year basis to Rs 386 crore. |
These are some of the reasons why we believe these two stocks will be a great catch for all the traders and investors out there. Let’s understand the detailed information about both companies:
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
RELAXO FOOTWEARS LTD:-
The biggest shoe manufacturer in India, Relaxo Footwears Limited, specializes in non-leather goods such as canvas shoes, athletic shoes, school shoes, rubber/EVA slippers, and more. In the “value” area of footwear, it leads as well.
Its portfolio includes well-known brands like Bahamas, Flite, Relaxo, and Sparx. Through distributors, retail stores, exports, e-commerce, and modern trade, the corporation offers its goods to merchants.
KEY POINTS –
1)Diversified Product Portfolio
The company’s best-known brands, Bahamas, Relaxo, Sparx, and Flite, are industry leaders. The company sells products in the young market called Bahamas & Flite, which have eye-catching designs and come in a variety of colors. The Sparx line of footwear comprises athletic footwear as well as stylish slippers, sandals, and shoes in the premier category. Its products are designed with an emphasis on pricing and saleability, fashion and comfort, aesthetics, and standard manufacturing procedures.
2)Manufacturing Facilities
With eight production facilities located in Bahadurgarh (Haryana), Bhiwadi (Rajasthan), Haridwar (Uttarakhand), and two other locations, it can produce approximately ten lakh pairs of shoes every day. These facilities are used to make slippers, sandals, and sports and casual shoes. Its combined manufacturing capacity is approximately 30 Cr pairs per annum, the highest among its major Indian competitors.
3)Strong Distribution Network
Within the footwear industry, the firm has built one of the biggest distribution networks. Its distribution network includes 389 EBOs, ~650 wholesalers, and more than 65,000 retailers. It is also available on all significant e-commerce portals. In FY23, North India makes up 44% of the total, with the East contributing 22%, the West 20%, and the South 15%.
Additionally, it has one overseas branch in Dubai and exports to about thirty nations.
4)Growing Online Presence
The corporation has partnered with top e-commerce sites like Amazon and Flipkart to sell its items online to keep up with the times. It also decided to take advantage of the digital sphere, using digital campaigns to develop a strong social media presence for its brand.
Over 70% of their product line is available for purchase online.
Fundamentals of Relaxo Footwears Ltd: –
( For a better understanding of fundamentals you can visit screener.in )
| Relaxo Footwears Ltd. Fundamentals |
|---|
| Market Cap – ₹ 20,923 Cr. |
| Stock P/E – 103 |
| Current Price – ₹ 840 |
| High / Low – ₹ 974 / 748 |
| Book Value – ₹ 76.2 |
| Debt to Equity -0.12 |
| Return on Equity – 10 Years – 18% |
| Return on Capital Employed – 10 years – 24.6 % |
| Compounded Profit Growth – 10 years -13% |
| Stock Price CAGR – 10 years – 29% which is very good. |
| Institutions Shareholding Holding – 15% which is Ok. |
Technical Analysis of Relaxo Footwears Ltd: –
As you can see from the chart below, The Stock is making a Cup with a handle pattern.
( For a better understanding of charts you can visit tradingview.com )
The company is posting good profits as per the scenario. The rubber companies are under pressure these days because of the increased Repo rates by the RBI (Reserve Bank of India) and increased Crude oil prices. The Raw material prices of these companies increased in the last couple of years. That’s why these companies profits have gone down from last couple of years. But in the upcoming days as RBI will reduce the Repo rate and Crude price will go down, these companies will again post higher net profits, and hence the stock will move upwards.
Relaxo Footwears Ltd. is a leading manufacturer in its segment and the company creates a monopoly in the footwear business. Relaxo Footwears can show an up move of 31% from the currency price at the target of 1100 in the upcoming days. These levels are as per our tried and tested CWH (Cup with handle) Strategy.
Studying through these points thoroughly we can say that Relaxo will be one of the best stocks for swing trading this week including Marico.
MARICO:-
One of the top consumer products firms in India, Marico Limited is active in the international beauty and wellness markets. It is found in more than 25 nations in developing Asian and African markets. Leading companies in the fields of edible oils, healthy foods, male grooming, fabric care, hair care, and skincare are supported by it.
KEY POINTS –
1)Product Portfolio
The following lists all of the product categories that the company offers for the domestic market, along with the company’s brands:
1. Coconut Oil – Parachute, Nihar Naturals.
2. Super-premium Refined edible oils – Saffola.
3. Value-added hair oils – Parachute Advansed, Nihar Naturals, Hair & Care.
4. Healthy foods – Saffola oats, Coco Soul. Coconut oil, Saffola FITTIFY Gourmet Range.
5. Premium Hair Nourishment – Livon Serums, Hair & Care.
6. Male Grooming & Styling – Set Wet, Beardo, Parachute.
7. Skin Care – Kaya Youth, Parachute advanced.
8. Hygiene – Mediker, Veggie Clean.
2Distribution Network
Out of the approximately 12 million outlets in India, the company’s pan-India distribution network reaches 5.6 million outlets.
E-commerce and modern trade accounted for 9% and 14% of domestic business in FY22, respectively.
3International Business
About 23% of the total consolidated revenues in FY22 came from foreign trade. Bangladesh ranks first in terms of export earnings (51%), then South East Asia (23%) the Middle East (13%), and South Africa (7%).
Brands including Parachute, HairCode, Fiancee, caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Sedure, Thuan Phat, and Isoplus are among those found in the international company portfolio.
Fundamentals Of Marico:-
( For a better understanding of fundamentals you can visit screener.in )
| MARICO FUNDAMENTALS |
|---|
| Market Cap – ₹ 68,594 Cr. |
| Stock P/E – 46.8 |
| Current Price – ₹ 530 |
| High / Low – ₹ 595 / 463 |
| Book Value – ₹ 32.6 |
| Debt to Equity –0.12 |
| Return on Equity – 10 Years – 36% |
| Return on Capital Employed – 10 years –41.1% which is very good. |
| Compounded Profit Growth – 10 years –13% |
| Compounded Sales Growth – 10 years – 8% |
| Institutions Shareholding Holding – 35% which is very good. |
As you can see from the above, the company’s foundation looks good. After careful analysis, we firmly believe this is the best stock for swing trading this week.
Technical Analysis of Marico: –
According to our technical analysis, Marico had made a Cup With a handle pattern and gave a breakout, but it’s still available at a lower price. So it’s a great opportunity for us to enter this stock.
( For a better understanding of charts you can visit tradingview.com )
As per our tried and tested Cup with Handle Strategy, It can show an upside move of 22% from the current price in the upcoming days. It can reach up to the target of 646 in the near future.
It is a popular company in its Segment. It has some popular brands like ‘Parachute’, Livon; Saffola, etc as we discussed in the overview of the company. These companies never stay for a longer period at the same price. The company is posting the highest profits so the share price will follow it soon. Hence we think It’s the best stock for swing trading along with marico. Let’s grab this opportunity.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
CONCLUSION
In conclusion, we can see that the swing trading strategy provides great opportunities in the stock market. In the article above we have covered all the possible points which make both Relaxo and Marico our best stocks for swing trading this week. Both stocks look strong fundamentally and technically. So finally without wasting more time let’s seize this golden chance and make money.
Happy Investing !!!
