Recent Price Movement and Market Context
On 24 Feb 2026, Relaxo Footwears Ltd’s stock price touched Rs.351.05, its lowest level in the past year. This decline comes amid a broader market environment where the Sensex itself experienced a sharp fall, closing at 82,427.68, down 624.86 points or 1.04%. Despite the Sensex being only 4.53% below its 52-week high of 86,159.02, Relaxo’s stock has underperformed significantly, with a one-year return of -18.58% compared to the Sensex’s positive 10.69%.
The stock’s performance today was broadly in line with the footwear sector, which has faced headwinds recently. However, Relaxo’s share price is trading below all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day averages — signalling sustained bearish momentum. The stock’s day change was -1.54%, further emphasising the downward pressure.
Financial Performance and Valuation Metrics
Relaxo Footwears Ltd’s financial indicators have contributed to the subdued market sentiment. The company reported a quarterly profit after tax (PAT) of Rs.26.54 crores, reflecting a decline of 19.6% compared to the previous corresponding period. Operating profit growth has been negative over the long term, with a compounded annual decline of 8.46% over the last five years. This trend has weighed on investor confidence and valuation.
Cash and cash equivalents stood at Rs.25.22 crores in the half-year period, marking the lowest level recorded recently. Additionally, the company’s PBDIT for the quarter was Rs.69.39 crores, also at a low point. These figures highlight the challenges faced in maintaining profitability and liquidity.
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Valuation and Comparative Analysis
The company’s return on equity (ROE) stands at 8%, which, when combined with a price-to-book value ratio of 4.2, indicates a relatively expensive valuation. This premium valuation is notable given the company’s recent financial performance and contrasts with the average historical valuations of its peers in the footwear sector.
Over the past year, Relaxo Footwears Ltd has not only generated negative returns of -18.58% but also experienced a 4.4% decline in profits. This consistent underperformance extends over the last three years, with the stock lagging behind the BSE500 index in each annual period. Such trends underscore the challenges the company faces in regaining market favour.
Balance Sheet and Shareholding Structure
On a positive note, Relaxo maintains a low average debt-to-equity ratio of 0.01 times, indicating minimal leverage and a conservative capital structure. The majority shareholding remains with the promoters, providing stability in ownership and strategic direction.
Sector and Market Dynamics
The footwear sector has been navigating a mixed environment, with some companies showing resilience while others face pressure from changing consumer preferences and competitive intensity. Relaxo’s stock performance, in particular, has been impacted by its financial results and valuation concerns, as reflected in its Mojo Score of 21.0 and a recent downgrade to a Strong Sell rating from Sell on 10 Nov 2025.
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Summary of Key Metrics
To summarise, Relaxo Footwears Ltd’s stock has reached a new 52-week low of Rs.351.05, reflecting a sustained decline over recent sessions. The company’s financial performance has shown contraction in profits and operating metrics, while valuation remains elevated relative to sector peers. Despite a stable balance sheet with low debt and promoter backing, the stock’s performance continues to trail the broader market and sector indices.
Market participants will note that the Sensex, although down on the day, remains near its 52-week high, highlighting the divergence in performance between Relaxo and the broader market. The stock’s position below all major moving averages further emphasises the current bearish trend.
Relaxo’s 52-week high was Rs.531.45, indicating a significant decline of approximately 34% from that peak. This gap underscores the challenges faced by the company in recent times and the cautious stance reflected in its Mojo Grade of Strong Sell.
Overall, the stock’s recent price action and financial indicators provide a comprehensive picture of the pressures weighing on Relaxo Footwears Ltd in the current market environment.
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