Relaxo Footwears Limited (RELAXO) AI Stock Analysis

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Relaxo Footwears Limited

(NSE:RELAXO)

Select Model

Rating:61Neutral

Price Target:INR 308.00▲(12.90% Upside)

Action:reiterated

Date:09/19/26

The score is supported by a strong balance sheet and improving recent free cash flow, but is held back by multi-year margin/profit compression. Technically the stock is in a sharp downtrend (well below key moving averages with very low RSI), and valuation remains relatively expensive (P/E ~39) with only a modest dividend yield.

Positive Factors

Branded market presenceRelaxo’s own-brand portfolio spans men’s, women’s, and children’s footwear across value-oriented categories and reaches customers through broad domestic distribution and retail channels. This supports recurring consumer awareness, product diversification, and scale-based demand over the medium term.

Negative Factors

Margin and profit compressionThe multi-year decline in net profit and net margins shows that Relaxo’s earnings power has weakened materially from earlier levels. Unless profitability recovers, lower returns on sales can restrict reinvestment, reduce operating resilience, and limit the benefit of continued brand scale.

Relaxo Footwears Limited (RELAXO) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 67.84B
Dividend Yield: 1.29%
Average Volume (3M): 24.21K
Price to Earnings (P/E): 36.5
Beta (1Y): 1.38
Revenue Growth: 2.11%
EPS Growth: 5.98%
Country: India
Employees: 7,708
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Relaxo Footwears Limited Business Overview & Revenue Model

Company Description

Relaxo Footwears Limited is a prominent producer and distributor of footwear, catering to a diverse clientele of men, women, and children, with operations spanning both India and global markets. Their extensive product range encompasses various shoe...

How the Company Makes Money

Relaxo primarily makes money by selling footwear products under its own brands in India. Revenue is largely generated from the sale of finished footwear (e.g., slippers/flip-flops, sandals, and shoes) to trade partners such as distributors, wholesale...

Relaxo Footwears Limited Financial Statement Overview

Summary

Financial position is a key strength: low leverage (debt-to-equity ~0.09–0.10) and steadily rising equity and assets. Cash flow has improved recently with positive free cash flow in 2025–2026, but operating performance is the main drag as revenue has been broadly flat since 2022 and net profit/margins have compressed materially versus 2021–2022.

Income Statement

66Positive

Balance Sheet

82Very Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	27.53B	27.02B	27.90B	29.14B	27.83B	26.53B
Gross Profit	12.16B	10.30B	16.41B	16.41B	14.04B	14.37B
EBITDA	4.18B	4.20B	4.09B	4.38B	3.57B	4.41B
Net Income	1.85B	1.79B	1.70B	2.00B	1.54B	2.33B
Balance Sheet
Total Assets	0	29.49B	27.62B	27.14B	24.95B	23.83B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.13B	3.11B	1.69B	2.66B	1.77B
Total Debt	0	2.33B	2.13B	2.05B	1.64B	1.74B
Total Liabilities	-22.06B	7.43B	6.64B	7.13B	6.40B	6.22B
Stockholders Equity	22.06B	22.06B	20.98B	20.01B	18.55B	17.60B
Cash Flow
Free Cash Flow	1.58B	2.24B	2.91B	-132.40M	2.15B	-835.20M
Operating Cash Flow	2.36B	3.60B	4.06B	2.35B	4.00B	559.90M
Investing Cash Flow	-1.50B	-2.21B	-2.62B	-986.30M	-2.58B	145.50M
Financing Cash Flow	-1.07B	-1.44B	-1.62B	-1.06B	-1.38B	-697.80M

Relaxo Footwears Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price272.80

Price Trends

50DMA311.76Negative

100DMA349.96Negative

200DMA335.42Negative

Market Momentum

MACD-9.08Negative

RSI33.06Neutral

STOCH21.10Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RELAXO, the sentiment is Negative. The current price of 272.80 is below the 20-day moving average (MA) of 286.64, below the 50-day MA of 311.76, and below the 200-day MA of 335.42, indicating a bearish trend. The MACD of -9.08 indicates Negative momentum. The RSI at 33.06 is Neutral, neither overbought nor oversold. The STOCH value of 21.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RELAXO.

Relaxo Footwears Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:RELAXO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:METROBRAND	66Neutral	INR 223.76B	54.13	―	0.73%	15.60%	16.47%
IN:RELAXO	61Neutral	INR 67.91B	36.53	―	1.29%	2.11%	5.98%
IN:BATAINDIA	60Neutral	INR 80.79B	55.26	―	5.41%	1.91%	-29.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:LIBERTSHOE	55Neutral	INR 3.21B	37.10	―	―	6.46%	-30.10%
IN:BIL	54Neutral	INR 13.62B	52.70	―	―	34.34%	-10.31%
IN:CAMPUS	51Neutral	INR 58.32B	37.92	―	0.79%	13.71%	30.46%

* General Sector Average

Performance Comparison

IN:RELAXO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:RELAXO	Relaxo Footwears Limited	272.80	-156.91	-36.51%
IN:BATAINDIA	Bata India Ltd	628.55	-393.95	-38.53%
IN:BIL	Bhartiya International Limited	1015.85	204.55	25.21%
IN:CAMPUS	Campus Activewear Ltd.	190.80	-87.49	-31.44%
IN:LIBERTSHOE	Liberty Shoes Limited	188.20	-129.40	-40.74%
IN:METROBRAND	Metro Brands Ltd.	820.80	-325.69	-28.41%

Relaxo Footwears Limited Corporate Events

Relaxo Announces 350% Dividend and Details TDS Rules for Shareholders

Sep 7, 2026

Relaxo Footwears Limited has informed shareholders that its Board recommended a dividend of Rs 3.50 per equity share, equivalent to 350 percent on shares with a face value of Rs 1, for the financial year ended March 31, 2026. The payout, which remain...

Relaxo Footwears Sets Virtual AGM and Proposes Rs 3.50 Dividend Per Share

Aug 22, 2026

Relaxo Footwears Limited has scheduled its 42nd Annual General Meeting for September 24, 2026 at 10:30 a.m. IST, to be conducted via video conferencing and other audio-visual means in line with MCA and SEBI circulars. The AGM venue will be deemed to...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 19, 2026

Relaxo Footwears Limited AI Stock Analysis

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