Moderation in demand is where the shoe pinches for footwear majors

Valuations factoring in second-half recovery are in the expensive zone

Notwithstanding lower growth rates recorded in the first quarter (Q1) of 2023-24 (FY24), which spanned from April to June, footwear stocks have seen some gains in the past two trading sessions. Bata India saw an increase of approximately 5 per cent, driven by positive expectations surrounding a potential tie-up in the sports/athleisure segment. This development is viewed favourably due to the segment’s higher growth rates.

The optimistic sentiment, combined with the anticipation of a recovery in the latter half of the financial year, has rubbed off on other listed footwear industry leaders as well.

Campus Activewear and Khadim India both