Recent Price Movement and Market Context
On 10 Mar 2026, Relaxo Footwears Ltd’s stock price declined by 0.58%, closing at Rs.308.5, its lowest level in the past year. This marks a continuation of a seven-day losing streak during which the stock has fallen by 12.9%. The stock’s performance today notably underperformed the footwear sector by 2.02%, indicating sector peers fared better in comparison.
The broader market context saw the Sensex open with a gap up of 809.57 points but subsequently lose momentum, falling by 361.58 points to trade at 78,014.15, a decline of 0.58%. The Sensex itself is on a three-week consecutive decline, having lost 5.8% over this period. Despite this, mega-cap stocks have been leading the market gains, contrasting with the underperformance of smaller stocks such as Relaxo Footwears.
Technical Indicators Signal Bearish Trends
Technical analysis of Relaxo Footwears Ltd reveals a predominantly bearish outlook. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the downward momentum. Weekly and monthly technical indicators such as MACD and Bollinger Bands also reflect bearish or mildly bearish signals. The KST indicator is mildly bullish on a monthly basis but bearish weekly, while the Dow Theory assessment remains mildly bearish across both timeframes. Overall, the technical picture suggests persistent selling pressure and limited short-term relief.
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Financial Performance and Valuation Concerns
Relaxo Footwears Ltd’s financial metrics have shown signs of strain over recent periods. The company reported a quarterly profit after tax (PAT) of Rs.26.54 crores, representing a decline of 19.6%. Its quarterly PBDIT also hit a low of Rs.69.39 crores, while cash and cash equivalents at half-year stood at Rs.25.22 crores, the lowest recorded level. These figures highlight a contraction in profitability and liquidity.
Over the last five years, the company’s operating profit has declined at an annual rate of 8.46%, indicating challenges in sustaining growth. This has contributed to a negative one-year profit growth of 4.4%. The stock’s valuation remains elevated relative to its financial performance, with a price-to-book value of 3.7 and a return on equity (ROE) of 8%. This premium valuation contrasts with the company’s deteriorating earnings and has been a factor in the stock’s underperformance.
Comparative Performance and Market Position
Relaxo Footwears Ltd has consistently underperformed the benchmark indices and its peer group. Over the past year, the stock has delivered a negative return of 26.73%, while the Sensex gained 5.26% during the same period. Furthermore, the stock has underperformed the BSE500 index in each of the last three annual periods, reflecting persistent relative weakness.
Despite these challenges, the company maintains a low average debt-to-equity ratio of 0.01 times, indicating minimal leverage. The majority shareholding remains with promoters, providing a stable ownership structure.
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Mojo Score and Rating Update
The company’s Mojo Score currently stands at 21.0, reflecting a Strong Sell rating. This is a downgrade from the previous Sell grade, which was revised on 10 Nov 2025. The Market Cap Grade is rated at 3, indicating a mid-tier market capitalisation relative to other stocks. These ratings encapsulate the company’s recent financial performance, valuation concerns, and technical weakness.
Summary of Key Metrics
Relaxo Footwears Ltd’s 52-week high was Rs.531.45, highlighting the extent of the decline to the current low of Rs.308.5. The stock’s consistent underperformance against the Sensex and BSE500, combined with deteriorating profitability and elevated valuation multiples, have contributed to the current market stance. Technical indicators reinforce the bearish trend, with the stock trading below all major moving averages and exhibiting negative momentum signals.
While the company’s low leverage and promoter stability provide some balance, the prevailing financial and market data underscore the challenges faced by Relaxo Footwears Ltd in recent periods.
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