Relaxo Footwears
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Relaxo Footwears is strategically transitioning towards a premium, digital-first business model, which is expected to enhance its competitive position and market share. Management's focus on operational efficiency and capacity optimization is crucial in mitigating rising input costs and labor pressures. The company's commitment to expanding its retail footprint, targeting 500 stores, aligns with the anticipated growth in the organized footwear market, projected at a 13% CAGR. Vista's financial outlook reflects an acceleration in revenue growth beyond historical trends, supported by a stable margin outlook and a fair valuation. However, the company faces challenges from global competition and inflationary pressures that could impact profitability. Over the next 12-24 months, key opportunities include leveraging the premiumization strategy and expanding into high-growth segments like athleisure, while watchpoints include execution risks related to infrastructure upgrades and external economic uncertainties
Why We Like This Stock
- Strategic shift towards premium footwear and digital-first initiatives enhances market positioning
- Expansion of retail network to 500 stores is expected to drive brand visibility and higher margins
- Strong domestic foundation and export potential in Oceania support long-term growth prospects
Things To Watch Out For
- Rising input costs and inflationary pressures may squeeze profit margins
- Execution risks associated with ongoing infrastructure upgrades could impact operational efficiency
- Intense competition from global brands poses a threat to market share and profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,914 | 2,790 | 2,702 | 2,789 | 2,919 |
| Profit Before Tax (Cr.) | 269 | 230 | 241 | 259 | 272 |
| PBT Margin | 9.2% | 8.2% | 8.9% | 9.3% | 9.3% |
| Net Profit (Cr.) | 203 | 172 | 176 | 188 | 198 |
| Earnings Per Share | 8.1 | 6.9 | 7.1 | 7.6 | 7.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| IDBI Capital | ▲ Buy | 459 | 19-Aug-2026 |
| Motilal Oswal | ▼ Sell | 290 | 14-Aug-2026 |
| Axis Securities | ► Hold | 365 | 01-Jun-2026 |
Company Overview
Show Company Profile
Relaxo Footwears Limited engages in the manufacture and sale of footwear and related products for men, women, and kids in India and internationally. The company offers casual, running, athleisure, walking, sneakers, formal, sports, school, and training and gym shoes; and slippers, sandals, flip-flops, slides, chappals, and clogs, as well as footwear accessories. The company also provides wind power generation services. The company provides its products under the Relaxo, Bahamas, Flite, Sparx, BOSTON, Mary Jane, Schoolmate, and KidsFun brands. It sells its products through exclusive branded outlets and e-commerce portals. Relaxo Footwears Limited was founded in 1976 and is based in New Delhi, India.