Relaxo Footwears Limited (RELAXO) AI Stock Analysis

• Market Cap: ₹107.77B
• Dividend Yield: 0.73%
• Average Volume (3M): 17.88K
• Price to Earnings (P/E): 61.6
• Beta (1Y): 0.79
• Revenue Growth: -8.39%
• EPS Growth: -3.74%
• Country: IN
• Employees: 7,708
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 1.50
• Shares Outstanding: 248,938,580
• 10 Day Avg. Volume: 13,717
• 30 Day Avg. Volume: 17,877
• PEG Ratio: -4.04
• Price to Book (P/B): 4.93
• Price to Sales (P/S): 3.71
• P/FCF Ratio: 35.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹433.00 ▲(5.70% Upside)

Relaxo Footwears Limited's overall stock score is primarily influenced by its strong financial foundation, despite challenges in profitability and cash flow management. The technical analysis indicates a bearish trend, and the stock appears overvalued based on its high P/E ratio. These factors contribute to a moderate overall score, with financial performance being the most significant factor.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, allowing Relaxo to invest in growth opportunities and weather economic downturns.

Market Position

Being a leading player in the footwear industry with popular brands strengthens Relaxo's market position, supporting long-term revenue growth and brand loyalty.

Revenue Model

Expanding e-commerce presence enhances market reach and sales channels, providing a durable advantage in adapting to consumer shopping trends.

Negative Factors

Declining Profit Margins

Declining profit margins indicate challenges in cost management and pricing power, potentially impacting long-term profitability and shareholder returns.

Inconsistent Free Cash Flow

Volatile free cash flow suggests difficulties in cash management post-capex, which can limit Relaxo's ability to fund new initiatives and manage debt.

Reduced Return on Equity

A declining return on equity reflects reduced profitability from shareholders' perspective, potentially affecting investor confidence and future capital raising.

Relaxo Footwears Limited Business Overview & Revenue Model

Company Description

Relaxo Footwears Limited (RELAXO) is a prominent Indian footwear manufacturing and retail company that specializes in a diverse range of products including casual shoes, slippers, sandals, and sports footwear. Established in 1976, the company has established a strong presence in the domestic market and has expanded its reach internationally. RELAXO operates across various segments catering to different consumer preferences and demographics, providing high-quality, stylish, and affordable footwear solutions through its well-known brands such as Relaxo, Sparx, and Bahamas.

How the Company Makes Money

Relaxo Footwears Limited generates revenue primarily through the sale of its footwear products across multiple channels including retail, wholesale, and e-commerce platforms. The company's key revenue streams include sales from branded retail outlets, franchise stores, and online marketplaces, which cater to both domestic and international markets. Additionally, Relaxo has established significant partnerships with various retail chains and distributors, which enhance its distribution network and market reach. The company's focus on product innovation, quality, and branding, combined with effective marketing strategies, contributes to its overall earnings and market competitiveness.

Relaxo Footwears Limited Financial Statement Overview

Summary

Relaxo Footwears Limited exhibits a strong financial foundation with steady revenue growth and a solid balance sheet characterized by low leverage. However, declining net profit margins and inconsistent free cash flows highlight challenges in maintaining profitability and efficient cash management.

Income Statement

Relaxo Footwears Limited has shown a consistent revenue growth over the years, with a notable increase from ₹26.5 billion in 2022 to ₹28.1 billion in 2025. Gross profit margin has generally been strong, hovering around 59-60%, indicating efficient cost management. However, net profit margin has seen a decline from 11% in 2021 to 6% in 2025, reflecting challenges in maintaining profitability. EBIT margin has also fluctuated, with a decrease in recent years, pointing towards operational inefficiencies.

Balance Sheet

The company's balance sheet is robust with a high equity ratio of approximately 76%, suggesting financial stability and low leverage. The debt-to-equity ratio is relatively low, around 0.10, indicating a conservative approach to debt financing. Return on equity has reduced from 19% in 2021 to 8% in 2025, suggesting a decline in the company's profitability from shareholders' perspective.

Cash Flow

Operating cash flow has been generally strong, with a notable improvement in 2025. However, free cash flow has been inconsistent, with negative figures in some years due to high capital expenditures. The operating cash flow to net income ratio has improved, showcasing better cash generation relative to reported earnings, but free cash flow to net income ratio remains volatile, indicating fluctuating ability to generate cash post-capex.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.96B	27.90B	29.14B	27.83B	26.53B	23.46B
Gross Profit	13.09B	16.41B	16.41B	14.04B	14.37B	13.12B
EBITDA	4.16B	4.09B	4.38B	3.57B	4.41B	5.20B
Net Income	1.75B	1.70B	2.00B	1.54B	2.33B	2.92B
Balance Sheet
Total Assets	0.00	27.62B	27.14B	24.95B	23.83B	21.76B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.11B	1.69B	2.66B	1.77B	3.44B
Total Debt	0.00	2.13B	2.05B	1.64B	1.74B	1.44B
Total Liabilities	-20.98B	6.64B	7.13B	6.40B	6.22B	6.03B
Stockholders Equity	20.98B	20.98B	20.01B	18.55B	17.60B	15.72B
Cash Flow
Free Cash Flow	0.00	2.91B	-132.40M	2.15B	-835.20M	3.90B
Operating Cash Flow	0.00	4.06B	2.35B	4.00B	559.90M	5.13B
Investing Cash Flow	0.00	-2.62B	-986.30M	-2.58B	145.50M	-4.53B
Financing Cash Flow	0.00	-1.62B	-1.06B	-1.38B	-697.80M	-561.50M

Relaxo Footwears Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 409.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 409.65 is below the 20-day moving average (MA) of 422.14, below the 50-day MA of 436.07, and below the 200-day MA of 442.79, indicating a bearish trend. The MACD of -9.02 indicates Positive momentum. The RSI at 37.16 is Neutral, neither overbought nor oversold. The STOCH value of 37.24 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VIPCLOTHNG	59 Neutral	₹2.93B	32.98	―	―	38.82%	―
BATAINDIA	57 Neutral	₹137.17B	80.45	―	0.90%	-0.95%	-50.96%
RELAXO	56 Neutral	₹107.77B	61.63	―	0.73%	-8.39%	-3.74%
KHADIM	54 Neutral	₹3.78B	82.13	―	―	-26.54%	-21.93%
RAJESHEXPO	51 Neutral	₹53.66B	72.91	―	―	112.02%	245.09%

Relaxo Footwears Limited Corporate Events

Relaxo Footwears Opens Special Window for Share Transfer Requests

Relaxo Footwears Limited has announced the opening of a special window for the re-lodgement of transfer requests for physical shares. This initiative, in compliance with SEBI regulations, allows shareholders to rectify and resubmit previously rejected or unattended transfer requests. The move is expected to facilitate smoother transactions and enhance shareholder engagement by transitioning shares to dematerialized form, potentially impacting the company’s market operations positively.