Relaxo Footwears Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹297.00+₹2.65 (+0.90%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Relaxo Footwears Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Relaxo Footwears Limited engages in the manufacture and sale of footwear and related products for men, women, and kids in India and internationally.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees7,548

Annual revenue₹2,690 Cr

How does it make money?

Turns over ₹2,690 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 7,548 employees supports ₹35.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin15.4%

Net margin6.7%

Revenue / employee₹35.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 10.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE10.8%

ROE8.1%

Peer median ROE25.9%

What is the outlook?

10 analysts covering the stock expect revenue to grow about 10.1% and earnings to grow about 21.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.1%

Est. earnings growth+21.6%

Analysts10

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -3% while net margin moved +19% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-3%

Margin effect+19%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.9% a year
✗ Profit CAGR of only 5.1%

Quality vs. Valuation

Company Quality

52/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

58/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

39.9x

3Y Median

65.2x

40 monthly readings · mean 84.1x · range 34.8x–152.2x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 39% below its 3y median of 65.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 42% below the peer median of 69.2x.

vs. its own history

Cheap

65.2x median over 40 months · -39%

vs. sector peers

Cheap

69.2x median of 4 peers · -42%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

39.9x

P/B

3.35x

EV/EBITDA

18.4x

PEG

7.83

Dividend Yield

1.18%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 12.6% to 15.4% over 3 years.
Valuation below its historical average
At 39.9x the stock trades 39% below its own median of 65.2x.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 42% over 3 years — worth checking what it funded.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Debt is increasingFinancial
Total debt is up 42% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.6% to 15.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 39% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 42% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹211 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 15.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹211 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 10.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 65.2x✓ 39.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹7,393 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.35x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.45

Profitable

Profitable on a per-share basis

ROE

8.1%

Moderate

Moderate capital efficiency

ROCE

10.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

7.7%

Modest

Modest growth

Profit Growth (YoY)

12.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.18%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹211 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹297

P/E (Forward)

29.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.6%

Average

Average margins

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

2.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

291.4 / 336.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,764 Cr	₹2,894 Cr	₹2,776 Cr	₹2,690 Cr	-0.9%
EBITDA	₹349 Cr	₹427 Cr	₹397 Cr	₹415 Cr	+5.9%
EBITDA Margin	12.6%	14.8%	14.3%	15.4%	—
PAT (Net Profit)	₹154 Cr	₹200 Cr	₹170 Cr	₹179 Cr	+5.1%
EPS	₹6.21	₹8.05	₹6.84	₹7.2	+5.1%
ROE	8.3%	10.0%	8.1%	8.1%	—
ROCE	11.3%	13.1%	10.8%	10.8%	—
Total Debt	₹164 Cr	₹205 Cr	₹213 Cr	₹233 Cr	+12.3%
Free Cash Flow	₹215 Cr	-₹14 Cr	₹290 Cr	₹211 Cr	-0.6%

🟡 Revenue has been broadly flat over 3 years (-0.9% a year).

🟢 EBITDA has grown at 5.9% a year over 3 years.

🟢 EBITDA Margin has risen from 12.6% to 15.4% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 5.1% a year over 3 years.

🟢 EPS has grown at 5.1% a year over 3 years.

🟡 ROE has held roughly flat at 8.1% over 3 years.

🟡 ROCE has held roughly flat at 10.8% over 3 years.

🔴 Total Debt has grown at 12.3% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-0.6% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,949 Cr

Total Liabilities

₹743 Cr

Total Debt

₹233 Cr

Cash & Equivalents

₹18 Cr

Operating Cash Flow

₹348 Cr

Capex

-₹137 Cr

Shareholding (proxy)

Institutional Holding

11.6%

Insider Holding

71.3%

Corporate Actions

Next Earnings

12 Nov 2026

Dividend Rate

₹3.5

Ex-Dividend Date

18 Sept 2026

Analyst Consensus

Recommendations

6 Buy · 1 Hold · 2 Sell

Target Price (Mean)

₹396.22

+33.4% vs CMP

Target Range

₹265 – ₹460

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 mixed3 general

Relaxo Footwears (NSEI:RELAXO) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Relaxo Foot Share Price

Upstox, 16 Oct

Relaxo Footwears Ltd (RELAXO) Share Price

Business Today, 16 Oct

Relaxo Footwears (BSE:530517) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

RELAXO Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Relaxo Footwears jumps 14%, snaps 3-day losing streak. What should investors do now?

The Economic Times, 17 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟢Financial HealthStrong17.8/20

🔴GrowthWeak4.8/20

🔴ProfitabilityWeak6.2/15

🟡ValuationFair9.5/15

🟢RiskLow6.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 13%15.4%
✓Free cash flow remains positive₹211 Cr
✓Debt / EBITDA stays below 2x0.6x
✓ROCE stays above 8%10.8%
✓Valuation vs its own median of 65.2x39.9x today