Relaxo Footwears Limited (RELAXO) AI Stock Analysis

• Market Cap: ₹119.17B
• Dividend Yield: 0.62%
• Average Volume (3M): 32.69K
• Price to Earnings (P/E): 68.2
• Beta (1Y): 0.65
• Revenue Growth: -7.78%
• EPS Growth: -7.25%
• Country: IN
• Employees: 7,708
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 2.00
• Shares Outstanding: 248,938,580
• 10 Day Avg. Volume: 55,684
• 30 Day Avg. Volume: 32,693
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹507.00
• Price Target Upside: 4.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ₹507.00 ▲(4.35% Upside)

Relaxo Footwears Limited's overall stock score is driven by its strong financial foundation and steady revenue growth. However, challenges in maintaining profitability, mixed technical indicators, and high valuation limit the score. The absence of earnings call data and corporate events further constrains the assessment.

Relaxo Footwears Limited Business Overview & Revenue Model

Company Description

Relaxo Footwears Limited (RELAXO) is one of India's leading footwear companies, specializing in the manufacturing and sale of a wide range of footwear products. Established in 1976, the company operates in the footwear industry, offering a diverse portfolio of products including slippers, sandals, shoes, and boots for men, women, and children. With popular brands like Relaxo, Sparx, Flite, and Bahamas under its umbrella, RELAXO caters to various customer segments by providing quality products at affordable prices.

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	27.98B	28.17B	29.14B	27.64B	26.53B	23.46B
Gross Profit	15.00B	16.68B	16.94B	5.82B	14.37B	13.12B
EBITDA	4.09B	4.09B	4.38B	3.57B	4.41B	5.20B
Net Income	1.70B	1.70B	2.00B	1.54B	2.33B	2.92B
Balance Sheet
Total Assets	27.62B	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	2.13B	2.13B	2.05B	1.64B	1.74B	1.44B
Total Liabilities	6.64B	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: Positive
• Last Price: 485.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RELAXO, the sentiment is Positive. The current price of 485.85 is above the 20-day moving average (MA) of 456.10, above the 50-day MA of 463.61, and below the 200-day MA of 494.46, indicating a neutral trend. The MACD of 4.90 indicates Negative momentum. The RSI at 58.23 is Neutral, neither overbought nor oversold. The STOCH value of 80.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	63 Neutral	₹143.38B	71.37		0.78%	0.60%	-36.73%
RELAXO	62 Neutral	₹119.17B	68.15		0.62%	-7.78%	-7.25%
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%
VIPCLOTHNG	56 Neutral	₹3.11B	41.73		―	40.33%	―
KHADIM	55 Neutral	₹4.40B	84.16		―	-16.46%	-2.33%
MAZDA	―	₹5.58B	20.76		1.15%	―	―
RAJESHEXPO	―	₹51.79B	54.10		―	―	―

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.