RELAXORelaxo Footwears Limited Forensic Risk Analysis

Footwear
Risk ClassWatch
Market Cap₹8,315 Cr
Primary DriverCompetitive Position
Flagium AI Risk Score
Early signs of stress detected. Not yet widespread, but initial deterioration is visible.
23 / 100
-5 QoQ
Improving
Sentinel Insight

Financial profile remains stable for now. Pressure is receding in competitive position. This suggests the risk profile is currently stabilizing. Risk levels are improving.

50.0th %ile (Sector)Accel: +0 Qtrs
Updated2026-06-02
Market View
₹328.25▲0.14%
PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Competitive Position
+15.0 pts
Earnings Quality
+7.9 pts
Final Composite Risk23 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 0 → 23 over 12 quarters.

Expected Direction
🟢 Improving
Primary Deterioration Drivers
  • Inventory Stress
  • Relative Growth Weakness
  • Industrial Margin Stress
What to Watch Next Quarter
  • Operating profit margins
  • Inventory turnover
  • Debt growth

Active Risk Objects (5)

CriticalHigh
Relative Growth Weakness
📉 Trend DeteriorationAnnualActive for 6 Years
More Detail
Impact Weight12/15
MomentumPersistent
Last SignalQ4 FY2026
Revenue growth consistently lags behind sector median (13.1%).

"Earnings quality is under severe pressure. High accruals suggest potential revenue overstatement."

Inventory Stress
📊 Earnings QualityAnnualActive for 2 Years
More Detail
Impact Weight15/15
MomentumDecaying
Last SignalQ2 FY2025
Inventory growth (22.1%) significantly outpaced revenue growth (-5.5%).

"Inventory overhang is clearing. Stock levels are normalizing as sales momentum returns."

Industrial Margin Stress
📊 Earnings QualityAnnualActive for 4 Years
More Detail
Impact Weight12/15
MomentumPersistent
Last SignalQ4 FY2026
RELAXO: Raw material costs consumed an additional 3.1% of revenue YoY.

"Early signs of margin erosion. Input costs are beginning to eat into core profits."

Operating Leverage Stress
📊 Earnings QualityAnnualActive for 3 Years
More Detail
Impact Weight10/15
MomentumDecaying
Last SignalQ4 FY2025
Expenses are consistently growing faster than revenues, creating operational pressure.

"Debt servicing metrics have improved recently. The company is actively deleveraging."

Working Capital Expansion
💧 Liquidity & CoverageAnnualActive for 1 Years
More Detail
Impact Weight10/15
MomentumDecaying
Last SignalQ4 FY2024
Working capital expansion detected: Receivable days increased by 35.3%.

"Working capital pressure is receding. Cash previously locked in operations is being released."

Risk Trajectory
Historical 12-quarter risk trend (Q-11 to Q0) followed by a 2-quarter predictive funnel (Q+1, Q+2).
Loading Chart
Resilience Matrix
Diagnostic benchmarking comparing structural sensitivity and risk buffers against sector medians.
MetricValuevs SectorSignal
Volatility (σ)3.9110.38✅ RESILIENT
Sensitivity (ε_s)11.00✅ RESILIENT
Escalation Prob.5%5%✅ NEUTRAL
Safety Buffer+43.0+43.0✅ RESILIENT
Forensic Benchmark Context: Footwear (n=5 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart
Share Price
Risk Score (0-100)
Market Performance
₹328.25(+0.14%)
1M Divergence+7.85%
1 Week+8.87%
1 Month+10.12%
6 Months-19.59%
1 Year-25.52%
2 Year-57.99%
3 Year-63.09%
Sector Average (1M)+2.27%
Sentinel Forensic Assessment
ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Early Signals and currently improving. Recent structural triggers in competitive position suggest a building pressure on the underlying framework. Material forensic traces are visible in core structural metrics, indicating a progressive erosion of structural stability. Initial structural recovery is visible; monitor for a sustained return to resilience.

RELAXO • MARKET STRUCTURE

Stage 4 — Declining

The company is in a defensive phase. Sentiment and fundamentals are deteriorating under persistent downward pressure, indicating elevated risk levels.

Stage Transition Prob.0%
Trend QualityDeteriorating
Phase Progression
Phase Progression Score15%
Readiness LabelLow (Early Base Consolidation)
Probability of Advancing0%
CoinTree Momentum
Composite Z-Score-0.0975σ
Weakening momentum trend
Universe Rank
A cross-sectional rank of this stock's composite momentum score compared to all other tracked equities in the universe. A rank of #1 of 1035 means it has the strongest overall price momentum in the market.
#1188 of 2716
Top 43.74% in momentum strength
Timeframe Sparklines
1W+8.9%
1M+10.1%
6M-19.6%
Weinstein Indicators
150 DMA₹357.13
200 DMA₹382.93
150 DMA Slope-4.9245%Declining
Relative Strength-13.79%Lagging
Relative Turnover (RTR)1.9938
ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

Risk profile is broadly in line with the Sector Mean (23).
RELAXORelaxo Footwears Limited
23 Risk
Sector %ile50th
Delta-5
Active Flags5
Accel+0
Competitive Position

Watch

METROBRANDMETROBRAND
25 Risk
Sector %ile75th
Delta-5
Active Flags9
Accel+0
Governance

Watch

BATAINDIABata India Limited
50 Risk
Sector %ile100th
Delta+19
Active Flags22
Accel+1
Balance Sheet Stress

Moderate Deterioration

* Peer comparison is based on risk signals, not valuation or returns.

Risk Profiles

Solvency
10100th %ile
VS Sector Median (8.5)
Governance
10100th %ile
VS Sector Median (8.5)
Earnings Quality
4.747.2th %ile
VS Sector Median (8.5)
Balance Sheet Stress
10100th %ile
VS Sector Median (8.5)
Competitive Position
00th %ile
VS Sector Median (8.5)
Growth Sustainability
10100th %ile
VS Sector Median (8.5)

Deterioration Timeline

2026

Relative Growth Weakness

2026

Industrial Margin Stress

2026

Relative Growth Weakness

2026

Industrial Margin Stress

2026

Relative Growth Weakness

2026

Industrial Margin Stress

2026

Relative Growth Weakness

2026

Industrial Margin Stress

2025

Relative Growth Weakness

2025

Operating Leverage Stress

2025

Relative Growth Weakness

2025

Operating Leverage Stress

2025

Operating Leverage Stress

2025

Inventory Stress

2024

Inventory Stress

2024

Working Capital Expansion

Key Financials (INR Cr)

PeriodRevenueNet ProfitOCFDebt
FY20262,748179348-
FY20252,817170406-
FY20242,94320023519
FY20232,801154400-