Relaxo Footwears Ltd Falls to 52-Week Low of Rs.355.4 Amid Continued Downtrend

Recent Price Movement and Market Context

On the day in question, Relaxo Footwears Ltd’s stock price fell by 2.38%, touching an intraday low of Rs.355.4, its lowest level in the past year. This decline extended a losing streak spanning five consecutive trading sessions, during which the stock has shed approximately 9.73% of its value. The stock’s performance lagged behind the footwear sector, underperforming by 0.29% on the day.

Technical indicators reveal that Relaxo Footwears is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This technical weakness is compounded by broader market pressures, as the Sensex itself declined by 0.76% to 81,554.33 points, continuing a three-week losing streak with a cumulative drop of 4.91%.

Long-Term Performance and Valuation Metrics

Over the past year, Relaxo Footwears Ltd has delivered a total return of -37.95%, markedly underperforming the Sensex, which gained 7.58% over the same period. The stock’s 52-week high was Rs.598.55, highlighting the extent of the recent decline. This underperformance is consistent with the company’s financial trends, where operating profit has contracted at an annualised rate of 4.33% over the last five years.

The company’s valuation metrics reflect a premium pricing relative to its peers. Relaxo Footwears trades at a price-to-book value of 4.3, despite a return on equity (ROE) of 8.3%, which is modest in comparison to industry standards. This disparity suggests that the stock’s current price may not be fully supported by its underlying profitability metrics.

Quarterly Financial Performance Highlights

The company’s latest quarterly results indicate a subdued growth environment. Net sales for the quarter stood at Rs.628.54 crores, reflecting a decline of 7.48% compared to the previous corresponding period. Profit before tax excluding other income (PBT LESS OI) contracted by 14.77% to Rs.36.59 crores, signalling pressure on earnings.

Cash and cash equivalents at the half-year mark were reported at Rs.25.22 crores, the lowest level recorded in recent periods, which may impact liquidity considerations. Despite these challenges, the company maintains a conservative capital structure, with an average debt-to-equity ratio of just 0.01 times, indicating minimal reliance on external borrowings.

Comparative Performance and Market Position

Relaxo Footwears Ltd has consistently underperformed the broader market and its peer group over multiple time horizons. The stock has lagged behind the BSE500 index in each of the last three annual periods, underscoring persistent challenges in generating shareholder value. Profitability has also declined by 3.7% over the past year, further contributing to the stock’s subdued performance.

Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction. The footwear sector itself has faced headwinds, but Relaxo’s relative underperformance highlights company-specific factors influencing investor sentiment.

Mojo Score and Analyst Ratings

According to MarketsMOJO’s latest assessment dated 10 Nov 2025, Relaxo Footwears Ltd holds a Mojo Score of 30.0, categorised under a 'Sell' grade. This represents a slight improvement from the previous 'Strong Sell' rating, reflecting some stabilisation in the company’s outlook, albeit still signalling caution. The market capitalisation grade stands at 3, indicating a mid-tier valuation relative to the broader market universe.

The downgrade in sentiment aligns with the company’s financial trends and stock price performance, reinforcing the challenges faced by Relaxo Footwears in regaining momentum within the competitive footwear sector.

Summary of Key Metrics

To summarise, Relaxo Footwears Ltd’s stock has reached a new 52-week low of Rs.355.4, extending a multi-session decline amid weak quarterly results and valuation pressures. The stock’s underperformance relative to the Sensex and sector peers, combined with modest profitability and premium valuation multiples, contribute to the current market stance. The company’s low leverage and promoter majority ownership remain notable features amid this environment.

Investors and market participants continue to monitor the stock’s price action and financial disclosures closely as it navigates this challenging phase.

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