Relaxo Footwears Limited (RELAXO) AI Stock Analysis

• Market Cap: ₹109.12B
• Dividend Yield: 0.68%
• Average Volume (3M): 17.88K
• Price to Earnings (P/E): 62.4
• Beta (1Y): 0.77
• Revenue Growth: -7.78%
• EPS Growth: -7.25%
• Country: IN
• Employees: 7,708
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 2.00
• 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: ₹494.00
• Price Target Upside: 12.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹494.00 ▲(12.70% Upside)

The overall stock score of 60 reflects a mixed outlook for Relaxo Footwears Limited. The company's strong financial foundation and low leverage are positive factors, but declining profitability and high valuation present significant challenges. Technical indicators suggest potential for a reversal, but current momentum is bearish.

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, sandals, flip flops, slides, chappals, casuals, belles, and clogs. In addition, it offers footwear accessories. The company provides its products under the Relaxo, Bahamas, Flite, Sparx, BOSTON, and Mary Jane brands. It sells its products through 394 exclusive brand outlets; and e-commerce portals. Relaxo Footwears Limited was founded in 1976 and is based in New Delhi, India.

How the Company Makes Money

Relaxo Footwears Limited makes money primarily through the manufacturing and sale of its footwear products. The company's revenue model is based on a combination of direct sales through its extensive retail network, which includes exclusive brand outlets and partnerships with various retail chains and distributors across India. Additionally, RELAXO has a growing presence in e-commerce, leveraging online platforms to reach a wider customer base. Key revenue streams for the company include domestic sales, exports, and private-label manufacturing. Strategic partnerships with retail giants and an expansive distribution network contribute significantly to RELAXO's earnings, allowing it to maintain a strong market position in the competitive footwear industry.

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: 438.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 438.35 is below the 20-day moving average (MA) of 442.57, below the 50-day MA of 460.43, and below the 200-day MA of 463.89, indicating a bearish trend. The MACD of -8.80 indicates Negative momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 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
BATAINDIA	66 Neutral	₹147.89B	70.90	―	0.78%	0.60%	-36.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RELAXO	60 Neutral	₹109.12B	62.41	―	0.68%	-7.78%	-7.25%
VIPCLOTHNG	58 Neutral	₹3.02B	40.18	―	―	40.33%	―
KHADIM	55 Neutral	₹4.54B	86.25	―	―	-16.46%	-2.33%
RAJESHEXPO	55 Neutral	₹52.47B	71.29	―	―	93.58%	93.53%

Relaxo Footwears Limited Corporate Events

Relaxo Footwears Reports Stable Q1 2025 Financial Results

Relaxo Footwears Limited announced its unaudited financial results for the quarter ending June 30, 2025, revealing a revenue from operations of INR 654.49 crore and a profit before tax of INR 65.91 crore. The results, reviewed by M/s Gupta & Dua, Chartered Accountants, indicate a stable financial performance, with the company continuing to maintain its market position. This announcement is expected to reassure stakeholders about the company’s ongoing operational stability and financial health.