Liberty Shoes surges 17%, hits over four-year high on heavy volumes

Till 12:38 PM, nearly 2.75 million equity shares, representing 16 per cent of total equity of Liberty Shoes, had changed hands on the NSE

Shares of Liberty Shoes hit an over four-year high of Rs 226.10 on the National Stocks Exchange (NSE), as the stock surged 17 per cent in Wednesday's intra-day trade, amid heavy volumes in an otherwise weak market. The stock of the footwear company quoted at its highest level since August 2018.

At 12:38 PM, the stock was trading 15 per cent higher at Rs 222.15, as compared to 0.70 per cent decline in the Nifty 50. The average trading volumes on the counter jumped over three-fold today with nearly 2.75 million equity shares, representing 16 per cent of total equity of Liberty Shoes, having changed hands on the NSE till the time of writing of this report, the exchange data shows. The names of the buyers and sellers could not be ascertained immediately.

As on June 30, 2022, individual shareholders held 5.29 million shares, or 31.02 per cent, stake in Liberty Shoes, the shareholding pattern data shows. Geofin Investments Private Limited, the promoter group company, held 4.47 million shares,or 26.25 per cent, holding in the company, data shows.

In the past three months, the stock has outperformed the market by surging 36 per cent, as compared to 1 per cent decline in the Nifty 50. Further, in the past six months, it has zoomed nearly 70 per cent, as against 13 per cent rise in the benchmark index.

Sector-wise, with the focus of government on manufacturing sector, the future potential of the footwear industry is promising, particularly for established and organized brands. The on-going changes in lifestyle and purchase habits have influenced the footwear industry as well.

“The Indian footwear market is witnessing a unique transformation over the last few years. India’s young populace with high aspiration and having an improved fashion quotient, is driving demand, especially for Casual, Athleisure, Sneakers and Women’s footwear, et al., as many brands have made deeper inroads in this space through the EBO channel given the huge growth potential. This has amplified consumer spends, reflecting in growing premiumization and steadily improving ASPs,” according Motilal Oswal Financial Services.

Key downside risks in the footwear industry are high inflation that could soften industry demand, rising input costs and GST that could hit gross margin, and competition from growing foreign brands, the brokerage firm said in sector report.