Relaxo Footwears Faces Market Sentiment Shift Amid Ongoing Financial Challenges

Relaxo Footwears, a small-cap player in the footwear industry, has recently undergone an adjustment in its evaluation score by MarketsMOJO. This revision reflects a shift in the technical trend from bearish to a sideways movement, indicating a change in market sentiment.
The stock's current price stands at 434.20, slightly below the previous close of 434.70. Over the past year, Relaxo Footwears has faced challenges, with a return of -41.57%, significantly lagging behind the BSE500 benchmark. The company has reported negative financial performance for the last five consecutive quarters, with a notable decline in operating profit at an annual rate of -2.14% over the past five years.

Key financial metrics reveal a low return on capital employed (ROCE) of 10.84% and cash and cash equivalents at Rs 42.06 crore, both of which are at their lowest levels. Additionally, the stock is trading at a premium compared to its peers, with a price-to-book value of 5.2, suggesting a valuation that may not align with its financial performance.

Overall, the adjustment in Relaxo Footwears' evaluation score highlights the ongoing challenges the company faces in a competitive market landscape.

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