ScoreWhy is Relaxo Footwears Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0 times
2
Poor long term growth as Operating profit has grown by an annual rate -10.87% of over the last 5 years
3
Flat results in Mar 26
- ROCE(HY) Lowest at 10.78%
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 24.19 cr
4
Stock is technically in a Mildly Bullish range
- The technical trend has improved from Sideways on 16-Jun-26 and has generated 4.15% returns since then
- The stocks Bollinger Band and OBV technical factors are also Bullish
5
With ROE of 8.1, it has a Very Expensive valuation with a 4.1 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 -12.41%, its profits have risen by 5.3% ; the PEG ratio of the company is 9.6
6
Majority shareholders : Promoters
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -12.41% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Relaxo Footwear should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Relaxo Footwear for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Relaxo Footwear
-12.41%
-0.31
39.94%
Sensex
-4.95%
-0.37
13.26%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.75%
EBIT Growth (5y)
-10.87%
EBIT to Interest (avg)
13.08
Debt to EBITDA (avg)
0.50
Net Debt to Equity (avg)
0.01
Sales to Capital Employed (avg)
1.31
Tax Ratio
25.76%
Dividend Payout Ratio
43.84%
Pledged Shares
0
Institutional Holding
12.78%
ROCE (avg)
13.82%
ROE (avg)
9.56%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
51
Industry P/E
47
Price to Book Value
4.14
EV to EBIT
42.19
EV to EBITDA
24.46
EV to Capital Employed
4.11
EV to Sales
3.38
PEG Ratio
9.70
Dividend Yield
0.82%
ROCE (Latest)
9.74%
ROE (Latest)
8.13%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
NET SALES(Q)
Highest at Rs 751.10 cr
PBDIT(Q)
Highest at Rs 123.98 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 16.51%
PBT LESS OI(Q)
Highest at Rs 79.12 cr.
PAT(Q)
Highest at Rs 67.67 cr.
EPS(Q)
Highest at Rs 2.72
-3What is not working for the Company
ROCE(HY)
Lowest at 10.78%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 24.19 cr
Loading Valuation Snapshot...
Here's what is working for Relaxo Footwear
Net Sales - Quarterly
Highest at Rs 751.10 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 123.98 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 16.51%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 79.12 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 67.67 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 67.67 cr has Grown at 20.4%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.72
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Relaxo Footwear
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 24.19 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
