Stock Price Movement and Market Context
On 16 Feb 2026, Relaxo Footwears Ltd’s share price declined by 2.29%, closing near its intraday low of Rs.352. This represents a fresh 52-week low for the stock, which has now fallen for four consecutive trading sessions, accumulating a loss of 5.07% over this period. The stock’s performance today notably underperformed the Footwear sector by 0.74%, signalling relative weakness within its industry group.
Technical indicators also highlight the bearish trend, with the stock trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness in price momentum underscores the challenges the company faces in regaining investor confidence.
In contrast, the broader market has shown resilience. The Sensex, after an initial negative opening down by 146.36 points, rebounded to close 0.26% higher at 82,843.87. The index remains within 4% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. This divergence between Relaxo Footwears and the benchmark index highlights the stock’s relative underperformance.
Financial Performance and Valuation Metrics
Relaxo Footwears Ltd’s financial results have contributed to the subdued market sentiment. The company reported a Profit Before Tax (PBT) of Rs.24.96 crores for the quarter ended December 2025, reflecting a sharp decline of 33.99% compared to the previous period. Net Profit After Tax (PAT) also fell by 19.6% to Rs.26.54 crores in the same quarter.
Cash and cash equivalents stood at Rs.25.22 crores at the half-year mark, representing the lowest level recorded in recent periods. This reduction in liquidity may be a factor in the cautious stance adopted by market participants.
Over the last five years, the company’s operating profit has contracted at an annualised rate of 8.46%, indicating challenges in sustaining growth. This trend is reflected in the stock’s performance, which has declined by 25.18% over the past year, while the Sensex has gained 9.09% during the same timeframe.
Valuation metrics further illustrate the stock’s premium positioning despite the financial headwinds. Relaxo Footwears trades at a Price to Book (P/B) ratio of 4.2, which is considered expensive relative to its peers’ historical averages. The company’s Return on Equity (ROE) stands at 8%, a moderate figure that does not fully justify the elevated valuation.
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Relative Performance and Market Position
Relaxo Footwears Ltd has consistently underperformed the broader market and its sector peers over recent years. The stock’s returns have lagged the BSE500 index in each of the last three annual periods, underscoring a persistent trend of relative weakness. The 52-week high for the stock was Rs.531.45, indicating a substantial decline of approximately 33.8% from that peak to the current 52-week low.
Despite the challenges, the company maintains a low average Debt to Equity ratio of 0.01 times, reflecting a conservative capital structure. Promoters remain the majority shareholders, which may provide some stability in ownership and strategic direction.
The company’s Mojo Score currently stands at 21.0, with a Mojo Grade of Strong Sell as of 10 Nov 2025, an upgrade from the previous Sell rating. This grading reflects the assessment of the company’s fundamentals, growth prospects, and valuation metrics within the MarketsMOJO framework.
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Summary of Key Financial and Market Indicators
To summarise, Relaxo Footwears Ltd’s current stock price of Rs.352 represents a significant low point within the last 52 weeks, reflecting a combination of declining profitability, subdued growth, and valuation concerns. The company’s quarterly results show a marked contraction in profits, while cash reserves have diminished. The stock’s premium valuation relative to peers and its underperformance against benchmark indices highlight the challenges faced by the company in the current market environment.
While the company’s low leverage and promoter ownership provide some structural stability, the overall financial and market data indicate a cautious outlook for the stock’s near-term performance.
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