Relaxo Footwears Limited (IN:RELAXO)
:RELAXO
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Relaxo Footwears Limited
(RELAXO)
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Rating:55Neutral
Price Target:
₹306.00
▼(-24.67% Downside)
Action:Reiterated
Date:04/02/26
The score is held up by a solid balance sheet and continued revenue growth, but is pressured by a clear technical downtrend with weak momentum and an expensive valuation (very high P/E) alongside declining profitability and inconsistent free cash flow.
Positive Factors
Balance Sheet Strength
A high equity ratio (~76%) and very low debt-to-equity (~0.10) provide durable financial flexibility. This conservative capital structure supports funding for capex, inventory build or marketing without relying on expensive debt, improving resilience through industry cycles and retail seasonality.
Negative Factors
Declining Net Margins
A near halving of net margins over several years signals persistent margin pressure from competitive pricing, rising opex or channel costs. Continued margin erosion undermines return generation and limits room for reinvestment or dividend growth unless operating efficiency or pricing power is restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A high equity ratio (~76%) and very low debt-to-equity (~0.10) provide durable financial flexibility. This conservative capital structure supports funding for capex, inventory build or marketing without relying on expensive debt, improving resilience through industry cycles and retail seasonality.
Read all positive factors
Relaxo Footwears Limited (RELAXO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹71.35B
Dividend Yield0.75%
Average Volume (3M)17.88K
Price to Earnings (P/E)94.8
Beta (1Y)1.13
Revenue Growth-6.88%
EPS Growth-4.38%
CountryIN
Employees7,708
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)7.00
Shares Outstanding248,938,580
10 Day Avg. Volume13,717
30 Day Avg. Volume17,877
Financial Highlights & Ratios
PEG Ratio-4.04
Price to Book (P/B)4.93
Price to Sales (P/S)3.71
P/FCF Ratio35.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.68
Revenue Forecast (FY)₹28.61B
Relaxo Footwears Limited Business Overview & Revenue Model
Company Description
Relaxo Footwears Limited manufactures and sells footwear for men, women, and kids in India and internationally. It offers casual, running, athleisure, walking, formal, sports, school, and training and gym shoes. The company also provides slippers,...
How the Company Makes Money
Relaxo primarily makes money by selling footwear products under its brand portfolio. Revenue is generated when the company supplies finished goods to its distribution chain (distributors/wholesalers) and directly or indirectly to retail outlets, a...
Relaxo Footwears Limited Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
75
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.45B | 27.90B | 29.14B | 27.83B | 26.53B | 23.46B |
| Gross Profit | 12.78B | 16.41B | 16.41B | 14.04B | 14.37B | 13.12B |
| EBITDA | 4.15B | 4.09B | 4.38B | 3.57B | 4.41B | 5.20B |
| Net Income | 1.74B | 1.70B | 2.00B | 1.54B | 2.33B | 2.92B |
Balance Sheet | ||||||
| Total Assets | 28.70B | 27.62B | 27.14B | 24.95B | 23.83B | 21.76B |
| Cash, Cash Equivalents and Short-Term Investments | 2.55B | 3.11B | 1.69B | 2.66B | 1.77B | 3.44B |
| Total Debt | 2.15B | 2.13B | 2.05B | 1.64B | 1.74B | 1.44B |
| Total Liabilities | 7.61B | 6.64B | 7.13B | 6.40B | 6.22B | 6.03B |
| Stockholders Equity | 21.09B | 20.98B | 20.01B | 18.55B | 17.60B | 15.72B |
Cash Flow | ||||||
| Free Cash Flow | 1.58B | 2.91B | -132.40M | 2.15B | -835.20M | 3.90B |
| Operating Cash Flow | 2.36B | 4.06B | 2.35B | 4.00B | 559.90M | 5.13B |
| Investing Cash Flow | -1.50B | -2.62B | -986.30M | -2.58B | 145.50M | -4.53B |
| Financing Cash Flow | -1.07B | -1.62B | -1.06B | -1.38B | -697.80M | -561.50M |
Relaxo Footwears Limited Technical Analysis
Negative
406.20
Price Trends
292.05
Negative
335.88
Negative
390.11
Negative
Market Momentum
-2.25
Positive
45.06
Neutral
25.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RELAXO, the sentiment is Negative. The current price of 406.2 is above the 20-day moving average (MA) of 300.32, above the 50-day MA of 292.05, and above the 200-day MA of 390.11, indicating a bearish trend. The MACD of -2.25 indicates Positive momentum. The RSI at 45.06 is Neutral, neither overbought nor oversold. The STOCH value of 25.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RELAXO.
Relaxo Footwears Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹70.65B | 31.42 | ― | 0.39% | 11.16% | 18.51% | |
69 Neutral | ₹284.24B | 64.07 | ― | 1.48% | 11.68% | -5.42% | |
68 Neutral | ₹9.65B | 36.02 | ― | ― | 32.93% | 1535.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | ₹87.35B | 45.84 | ― | 0.95% | -0.64% | -48.93% | |
55 Neutral | ₹71.35B | 94.83 | ― | 0.75% | -6.88% | -4.38% | |
50 Neutral | ₹4.09B | 200.89 | ― | ― | 8.84% | -11.12% |
* Consumer Cyclical Sector Average
IN:RELAXO
Relaxo Footwears Limited
290.55
-138.68
-32.31%
IN:BATAINDIA
Bata India Ltd
690.80
-557.85
-44.68%
IN:BIL
Bhartiya International Limited
720.60
30.50
4.42%
IN:CAMPUS
Campus Activewear Ltd.
232.80
-31.26
-11.84%
IN:LIBERTSHOE
Liberty Shoes Limited
237.35
-183.30
-43.58%
IN:METROBRAND
Metro Brands Ltd.
1,051.25
-124.61
-10.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.