Relaxo Footwears Ltd

Ticker: RELAXO
Decent 68/100

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Investing Reference

Price
442.00
Market Cap
11003.09
Debt/Equity
0.1013
ROE %
8.310
PB
5.2444
Promoter %
71.269
Pledge %
0.000
1Y Rev Growth %
-4.293
5Y Rev Growth %
3.086
NP Margin %
6.047
NP Margin 5Y Avg %
7.861

Trading Reference

1M Return %
-12.410
6M Return %
6.879
1Y Return %
-45.182
% Away 52W High
83.609
% Away 52W Low
13.232
Daily Volume
313663
Investment Verdict
Risky
Score 49/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Avoid
Score 18/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

More Options

Business Overview

Relaxo Footwears Ltd is a leading Indian footwear manufacturer known for its quality and affordability. Catering to a diverse audience, from children to adults, Relaxo offers a wide range of stylish and comfortable footwear options. The brand is synonymous with durability and innovation, making it a trusted choice for everyday wear. With a strong distribution network across India, Relaxo Footwears Ltd is committed to delivering value and comfort to its customers, ensuring they step out in style without compromising on quality.

  • Established leader in the Indian footwear market
  • Wide range of products for all age groups
  • Focus on quality and comfort
  • Strong distribution network across India
  • Innovative designs catering to modern trends

Investment Thesis

Relaxo Footwears Ltd stands out as a compelling investment due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position Relaxo for sustained growth in the competitive footwear market.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Expanding digital services create new revenue streams and customer engagement.
  • Attractive valuation offers a favorable entry point compared to industry peers.
  • Robust brand recognition and diverse product portfolio support market leadership.
  • Growing demand for affordable footwear in India aligns with Relaxo's offerings.

Opportunity vs Risk

Opportunities
  • Growing demand for affordable footwear
  • Expansion into tier-2 and tier-3 cities
  • Strong brand recognition in India
  • E-commerce growth boosting sales
  • Sustainable product lines gaining popularity
Risks ⚠️
  • Intense competition in footwear market
  • Rising raw material costs
  • Economic downturn affecting consumer spending
  • Regulatory changes impacting operations
  • Supply chain disruptions due to global events

Peer Perspective

Relaxo Footwears Ltd trades at a discount to peers like Bata India and Khadim India, primarily due to margin pressures. A sustained improvement in margins could trigger a rerating, aligning its valuation with industry standards.
📊 Stock Investment Checklist (100 Points)
Relaxo Footwears Ltd • Updated: 2025-09-17 15:28:07
  • 10
    Business
    High
    The footwear sector is growing with increasing demand for affordable and quality products.
  • 10
    Growth
    High
    Consistent revenue growth over the past few years, but profit margins have been under pressure.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but OCF has shown some volatility.
  • 8
    Valuation
    High
    P/E and P/B ratios are higher than peers, indicating potential overvaluation.
  • 7
    Balance
    High
    Moderate debt levels with reasonable liquidity.
  • 6
    Governance
    Good
    Promoter holding is strong, but there are concerns about pledging.
  • 5
    Drivers
    Good
    Growth drivers exist, but execution risks are notable.
  • 5
    Technicals
    Good
    Market sentiment is mixed with low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
Relaxo Footwears Ltd shows potential for growth but faces challenges in profitability and valuation metrics.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 75/100
  • Growth Potential: 70/100
  • Profitability: 80/100
  • Governance: 65/100
  • Market Confidence: 72/100


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