Relaxo Footwears Ltd Stock Falls to 52-Week Low of Rs.350

Stock Performance and Market Context

On 27 Feb 2026, Relaxo Footwears Ltd (Stock ID: 250971) recorded a new 52-week low price of Rs.350, reflecting a continued downward trend in the stock’s valuation. The stock underperformed its sector by 0.47% on the day, closing with a day change of -1.00%. This decline followed two consecutive days of gains, signalling a reversal in short-term momentum.

Relaxo’s share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained bearish pressure. In comparison, the broader Sensex index opened flat but later fell by 433.82 points, or 0.56%, closing at 81,786.66. While the Sensex remains below its 50-day moving average, the 50DMA itself is positioned above the 200DMA, suggesting mixed signals for the broader market.

Long-Term Price and Benchmark Comparison

Over the past year, Relaxo Footwears Ltd’s stock has declined by 20.69%, a stark contrast to the Sensex’s positive return of 9.66% during the same period. The stock’s 52-week high was Rs.531.45, highlighting the extent of the recent depreciation. This persistent underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods.

Financial Performance and Valuation Metrics

Relaxo Footwears Ltd’s financial results have contributed to the stock’s subdued performance. The company reported a quarterly profit after tax (PAT) of Rs.26.54 crores, representing a decline of 19.6% compared to the previous corresponding period. Operating profit has contracted at an annualised rate of 8.46% over the last five years, reflecting challenges in sustaining growth.

Cash and cash equivalents stood at Rs.25.22 crores in the half-year period, marking the lowest level recorded recently. Quarterly PBDIT also reached a low of Rs.69.39 crores, underscoring pressure on operating earnings. Despite these figures, the company maintains a low average debt-to-equity ratio of 0.01 times, indicating minimal leverage on its balance sheet.

The return on equity (ROE) is reported at 8%, while the stock trades at a price-to-book value of 4.2, suggesting a relatively expensive valuation compared to peers’ historical averages. Over the past year, profits have declined by 4.4%, further weighing on investor sentiment.

Sector and Shareholding Overview

Relaxo operates within the footwear industry, a sector that has seen mixed performance amid evolving consumer trends and competitive pressures. The company’s majority shareholding remains with promoters, providing a stable ownership structure. However, the stock’s Mojo Score has deteriorated to 21.0, with a Mojo Grade downgraded to Strong Sell from Sell as of 10 Nov 2025, reflecting the market’s cautious stance.

Summary of Key Concerns

The stock’s decline to Rs.350 highlights several underlying factors. The persistent negative trend in profitability, combined with a premium valuation relative to earnings and book value, has contributed to the cautious market outlook. The company’s inability to generate positive returns relative to benchmark indices over multiple years further emphasises the challenges faced.

While the company’s low leverage is a positive aspect, it has not been sufficient to offset the impact of declining profits and subdued growth rates. The recent downgrade in Mojo Grade to Strong Sell reflects these cumulative concerns.

Market and Sector Dynamics

The footwear sector, in which Relaxo operates, has experienced varied performance across companies, with some indices such as the S&P BSE Oil & Gas hitting new 52-week highs on the same day. This divergence underscores the selective nature of market gains and the specific pressures on Relaxo’s stock.

Investors and analysts will continue to monitor the company’s financial metrics and market positioning as it navigates these challenges.

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