5 Best Footwear Stocks in India 2023

Whenever we buy any item, we tend to do a lot of research on it, compare it with its peers etc., especially if it is related to fashion. Similarly, when it comes to footwear, people check all types of parameters, the quality, colour, size etc.

Since we know, how important footwear is in our lives, not just for fashion or as an accessory, but as a necessity in life, this article will discuss the best-performing stocks in the footwear industry. After all, it is always advised to invest in what one believes in, and footwear is definitely on the list. 

Here are the stocks we will be discussing in the article ahead – 

• Superhouse Ltd
• Metro Brands Ltd
• Liberty Shoes Ltd
• Campus Activewear Ltd
• Lehar Footwear Ltd

Let us take a look at each of them one by one- 

Best Footwear Stocks

1. Superhouse Limited

Superhouse Ltd is engaged in manufacturing and exports of Leather, Leather Goods and Textile Goods etc. It has a portfolio of a variety of footwear and accessories. The product offerings of the Co include Finished Leather, Men’s Footwear, Lady’s Footwear, Children’s Footwear, Safety Footwear, Leather accessories and garments such as belts, Riding Products and Safety Wear.

They are also involved in textile and garments and the segment makes up 17% of the company’s revenue, the rest comes from footwear. 

The following table mentions other important aspects of the company – 

The Price to Earning Ratio is lower than its sector PE ratio of 96.1, indicating a good value given that the stock has risen by 55.7% in the past year. The Quarterly Net profit rose 35% YoY to Rs 10.2 Crores. The Annual Revenue rose 21.6%, in the last year to Rs 663.1 Crores. Its sector’s average revenue growth for the last fiscal year was 6.9%. The debt to Equity Ratio of 0.4 is less than 1 and healthy. This implies that its assets are financed mainly through equity. The stock has a beta of 1.16, indicating it is a risky stock, however, considering the risk, the stock has been able to give excellent results. 

2. Metro Brands Limited

Metro Brands operates 600+ Stores across 136 cities spread across 30 states and union territories in India. They have the 3rd largest number of stores in India in the footwear market. Metro Brands retail footwear under their own brands of Metro, Mochi, Walkway, Da Vinchi, and J. Fontini, as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop, which complement their in-house brands. Other than footwear, they also operate in accessories such as belts, bags, socks, masks, and wallets, at their stores.

The following table mentions other important aspects of the company – 

The PE Ratio of the stock is 60.6, which lower than its sector PE ratio of 96.1, indicating the stock is currently undervalued. The Mutual Fund Holding of the company increased by 0.2% in the last quarter to 4.3, indicating a valuable investment in the stock. 

The debt-to-equity ratio of the company is zero, which is also a positive sign. The Annual Net Profit rose 210.2% in the last year to Rs 211.6 Crores. The beta of the stock is 0.84, which means the investment is low risk, making it a great deal. The stock rose by 54.5% in the previous year. 

3. Liberty Shoes Limited

Liberty Shoes have a wide retail and wholesale network. Their footwear are categorised into fashion footwear, dress shoes sports shoes, casuals, school shoes, etc. The company also makes and sells safety, and industrial footwear besides army, navy, CRPF, and jungle boots. It also sells a range of accessories like shoe-care products, backpacks, belts, wallets, travel bags, handbags and others.

The company’s brands include fortune, warrior, Windsor, senorita, tiptop, foot fun, prefect and force-10. 

The following table mentions other important aspects of the company – 

Any decrease in the promoter holding is considered a negative sign for a company since it indicated that the promoter might not be interested in the company anymore. Such promoter hooding of the company decreased by 0.9% in the most recent quarter to 58.5%. The Stock Price rose 64.9% and outperformed its sector by 62.6% in the past year. The Debt to Equity Ratio of 0.3 is less than 1 and is hence a healthy position. The Quarterly Net profit of the company isn’t a good picture and fell 63% YoY to Rs 1.9 Crores. However, the beta of the stock is 0.93, indicating a low-risk investment, the Return on Equity for the last financial year was 1.2%, which is much less than it peers. Hence not immediately but an investment after observing the stock for some time will be a wise decision. 

4. Campus Activewear Limited

Campus was incorporated on September 24, 2008, and is one of India’s largest sports and athleisure footwear brands in terms of value and volume. Campus is the fastest-growing sports and athleisure footwear brand in India with more than 20% market share. It is one of the Indian companies that has a significant presence in the industry commonly dominated by international brands. 

Campus has 400+ distributors in 28 states and 625 cities and 18,200 retailers across India. 

The following table mentions other important aspects of the company – 

The PE ratio of the stock is way high than the industry PE of 96.1, which can conclude that the stock is highly overvalued. However, the company also had an ROE of 25.4%more than 20% in the last financial year, which is a positive sign. 

Mutual Fund Holding increased by 0.1% in the last quarter to 5.9.

The stock price of the company rose 8.4% outperforming its sector by 10.6% in the past week. The Annual Revenue rose 51.8%, in the last year to Rs 1,196.6 Crores. These positive aspects of the stock do justify the overvaluation of the stock. The best decision would be to wait for the adjustments to take place and analyse the situation again. 

5. Lehar Footwear Limited

Lehar Footwears Ltd manufactures a variety of footwear like lightweight fancy slippers, PVC and TPR footwear, synthetic leather chappals in addition to Hawai Chappals and canvas shoes.

The company’s manufacturing units are located in Jaipur. The annual installed capacity (in lakhs) stands at –

Hawai Chappals – 75

PU Sole Footwear – 45

EVA Footwear – 15.87

Canvas Shoes – 12

The following table mentions other important aspects of the company – 

Price to Earning Ratio is 32.4, lower than its sector PE ratio of 96.1. However, the valuation does not seem so good, when we look at the revenues of the company. Their annual revenue fell by 6.1% in the last year and reached Rs. 138.8 Crores. The Debt to equity ratio of the company is 1.3, which is also on the higher side. Return on Equity(ROE) for the last financial year was 5.5%. However, since the beta of the company is low at 0.54 and the stock price rose 165% in the last year, the stock can be given a small portion of the portfolio. 

Final Thoughts 

These were the best footwear stocks in India. It should be kept in mind that the above information is generalised and every investor has different needs and goals. These end goals can hence require different criteria for research and different parameters. The above-given stocks have performed and outperformed their sector market in the recent past and the past year. One should always remember to conduct their own research before investing in line with their goals and risk appetite.