Stock Price Movement and Market Context
On 23 Jan 2026, Relaxo Footwears Ltd recorded an intraday low of Rs 356, representing a 2.51% drop during the trading session. The stock closed near this level, reflecting a day change of -2.12%, in line with the broader footwear sector's performance. Notably, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
The broader market context saw the Sensex decline by 798.24 points, or 0.94%, closing at 81,537.70 after a flat opening. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals for the market overall. Additionally, the NIFTY REALTY index also hit a new 52-week low on the same day, reflecting sectoral pressures in certain segments.
Financial Performance and Valuation Concerns
Relaxo Footwears Ltd’s financial results have shown signs of stagnation and decline over recent periods. The company’s operating profit has contracted at an annual rate of -4.33% over the last five years, indicating challenges in sustaining growth. The latest quarterly results for September 2025 revealed a Profit Before Tax (PBT) of Rs 36.59 crore, down by 14.77% compared to the previous period.
Net sales for the quarter stood at Rs 628.54 crore, reflecting a decline of 7.48%. Cash and cash equivalents also reached a low of Rs 25.22 crore in the half-year period, highlighting tighter liquidity conditions. The return on equity (ROE) remains modest at 8.3%, while the stock’s price-to-book value ratio is elevated at 4.3, suggesting a premium valuation relative to its peers.
Our current monthly pick, this Mid Cap from Automobile Two & Three Wheelers, survived rigorous evaluation against dozens of contenders. See why experts are backing this one!
- - Rigorous evaluation cleared
- - Expert-backed selection
- - Mid Cap conviction pick
Comparative Performance and Market Position
Over the past year, Relaxo Footwears Ltd has underperformed significantly, delivering a negative return of -36.35%, while the Sensex gained 6.56% over the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods.
The stock’s 52-week high was Rs 598.55, underscoring the steep decline it has experienced. Despite operating in the footwear sector, which has seen varied performance across companies, Relaxo’s valuation remains relatively high compared to its peers’ historical averages, raising questions about its pricing in the market.
Balance Sheet and Shareholding Structure
On a positive note, the company maintains a low average debt-to-equity ratio of 0.01 times, indicating minimal leverage and a conservative capital structure. The majority ownership rests with promoters, providing a stable shareholding base.
Is Relaxo Footwears Ltd your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Summary of Key Metrics and Ratings
The company’s Mojo Score currently stands at 30.0, with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 10 Nov 2025. The Market Cap Grade is 3, reflecting a mid-tier market capitalisation status. Despite the recent upgrade in rating, the overall assessment remains cautious due to the company’s subdued growth and valuation concerns.
Relaxo Footwears Ltd’s performance and valuation metrics indicate a period of subdued momentum, with the stock trading near its lowest levels in a year. The combination of declining sales, reduced profitability, and premium valuation relative to peers has contributed to the current market sentiment.
Technical and Sectoral Observations
Technically, the stock’s position below all major moving averages suggests continued pressure in the near term. The footwear sector itself has experienced mixed trends, with some companies outperforming while others face headwinds. Relaxo’s performance relative to the sector has been weaker, as reflected in its recent price action and financial results.
Investors and market participants will likely continue to monitor the stock’s price movements and financial disclosures closely, given its significant deviation from previous highs and ongoing challenges in growth metrics.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
