Relaxo Footwears Ltd (RELAXO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lehar Footwears

Campus Activewe.

Metro Brands

Sreeleathers

Bata India

Liberty Shoes

Relaxo Footwear

Redtape

Khadim India

KSR Footwear

Why is Relaxo Footwears Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -4.33% of over the last 5 years

Flat results in Sep 25

CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 25.22 cr
NET SALES(Q) Lowest at Rs 628.54 cr
PBDIT(Q) Lowest at Rs 81.16 cr.

With ROE of 8.3, it has a Very Expensive valuation with a 4.8 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -39.31%, its profits have fallen by -3.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -39.31% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Relaxo Footwear for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Relaxo Footwear

-39.31%

-1.27

30.99%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.93%

EBIT Growth (5y)

-4.33%

EBIT to Interest (avg)

14.81

Debt to EBITDA (avg)

0.47

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.34

Tax Ratio

25.75%

Dividend Payout Ratio

37.25%

Pledged Shares

Institutional Holding

12.91%

ROCE (avg)

15.65%

ROE (avg)

11.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.81

EV to EBIT

46.56

EV to EBITDA

26.93

EV to Capital Employed

4.86

EV to Sales

3.83

PEG Ratio

Dividend Yield

0.74%

ROCE (Latest)

10.43%

ROE (Latest)

8.26%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 9.68 times

-7What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 25.22 cr

NET SALES(Q)

Lowest at Rs 628.54 cr

PBDIT(Q)

Lowest at Rs 81.16 cr.

PBT LESS OI(Q)

Lowest at Rs 36.59 cr.

Loading Valuation Snapshot...

Here's what is working for Relaxo Footwear

Debtors Turnover Ratio- Half Yearly

Highest at 9.68 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Relaxo Footwear

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 36.59 cr has Fallen at -14.77%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 628.54 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 628.54 cr has Grown at -7.48%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 81.16 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 36.59 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 25.22 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income - Quarterly

Highest at Rs 12.26 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income