Relaxo FootwearsBOM:530517 -1.96%81 Operating Margin % is 11.31% as of Mar. 2026, which is 1% below its 10-year median of 11.48. GuruFocus rates BOM:530517 with a GF Score™ of 81/100 and a GF Value™ of ₹660.08 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,035 Manufacturing - Apparel & Accessories companies, Relaxo Footwears ranks better than 69.86% on this metric.
Relaxo Footwears Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -12.2%.
The historical rank and industry rank for Relaxo Footwears's Operating Margin % or its related term are showing as below:
BOM:530517'
s Operating Margin % Range Over the Past 10 Years
Min: 7.81 Med: 11.48 Max: 16.63
Current: 8.02
BOM:530517's Operating Margin % is ranked better than 69.86% of 1035
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.08
vs BOM:530517: 8.02
Relaxo Footwears's 5-Year Average Operating Margin % Growth Rate was -12.20% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Relaxo Footwears Operating Margin % Related Terms
Relaxo Footwears Operating Margin % Historical Data
* Premium members only.
The historical data trend for Relaxo Footwears's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:530517 vs NKE, DECK, ONON: Operating Margin % Comparison
For the Footwear & Accessories subindustry, Relaxo Footwears's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Relaxo Footwears Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Relaxo Footwears's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Relaxo Footwears's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Relaxo Footwears's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Relaxo Footwears (BOM:530517) has a Operating Margin % of 11.31% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Relaxo Footwears and its competitors. This is near median its historical median of 11.48. Over the past decade, Relaxo Footwears' Operating Margin % has ranged from 7.81 to 16.63. According to the industry distribution chart, Relaxo Footwears ranks #312 out of 1035 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 30.1%.
Is Relaxo Footwears' Operating Margin % too high?
Relaxo Footwears' current Operating Margin % of 11.31% is near median its 10-year median of 11.48. Over the past 10 years, this metric has ranged from a low of 7.81 to a high of 16.63. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.08. Relaxo Footwears' value of 11.31% is 177.2% above this industry median. Based on the distribution chart, Relaxo Footwears ranks #312 out of 1035 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Relaxo Footwears has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Relaxo Footwears' Operating Margin % compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Relaxo Footwears ranks #312 out of 1035 companies for Operating Margin %. This puts Relaxo Footwears in the upper half of its industry. The industry median Operating Margin % is 4.08. Relaxo Footwears' value of 11.31% is 177.2% above this benchmark. Historically, Relaxo Footwears' own Operating Margin % has ranged from 7.81 to 16.63 over the past decade. While the company's 10-year median is 11.48 vs. the industry median of 4.08, Relaxo Footwears has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,035 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Relaxo Footwears's current Operating Margin % of 11.31% is 177.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Relaxo Footwears and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Relaxo Footwears's current Operating Margin % is 11.31%, which is near median its own 10-year median of 11.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Relaxo Footwears stock overvalued right now?
Based on GuruFocus' analysis, Relaxo Footwears (BOM:530517) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹660.08, compared to a current price of ₹385.10 — trading 41.7% below its estimated fair value. The current Operating Margin % is 11.31%, which is near median its 10-year median of 11.48 and 177.2% above the Manufacturing - Apparel & Accessories industry median of 4.08. Relaxo Footwears' overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Relaxo Footwears (BOM:530517), the current Operating Margin % is 11.31% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Relaxo Footwears (BOM:530517) Overvalued in 2026?
Based on GuruFocus' analysis, Relaxo Footwears stock appears to be undervalued.
The current stock price of ₹385.10 is trading 41.7% below its estimated GF Value™ of ₹660.08.
GuruFocus considers Relaxo Footwears to be Significantly Undervalued.
Key valuation signals for BOM:530517:
Operating Margin %: 11.31% (near median its 10-year median of 11.48)
GF Value™: ₹660.08 vs. price of ₹385.10 (41.7% below fair value)
Industry Position: 177.2% above the Manufacturing - Apparel & Accessories median (#312 of 1035)
No single metric tells the full story. See the BOM:530517 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Relaxo Footwears Ltd manufactures footwear in India and sells it through various brand names such as Flite, Bahamas, Boston, Sparx, Schoolmate, Kids Fun, and Mary Jane. Roughly half of the company's production is non-leather footwear, including a wide variety of slippers, floaters, sandals, and shoes. Relaxo sells its products predominantly in India through distributors, retail stores, and e-commerce. The company has only one segment, Footwear and related products. Geographically, it generates maximum revenue from its business in India, and also has some exposure to international markets.
81GF Score
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