Footwear company stocks continued their rally, with Liberty Shoes and Campus Activewear hitting new BSE highs in Wednesday’s intraday trading on a healthy trading outlook.
Besides these two stocks, Khadim India, Bata India, Relaxo Footwears and Metro Brands also rose up to 10% each in intraday trading today. By comparison, the S&P BSE Sensex rose 0.46% to 57,407 as of 9:30 a.m.
The footwear sector is going through a phase of transformation in which the addition of design and comfort features on functionality-related aspects is also gaining importance in the mind of the consumer. The size of the global footwear market is currently around $224.6 billion and is expected to grow at a healthy rate of 4%. India is the second largest shoe manufacturer in the world behind China.
Increased discretionary income, improved standard of living, increased brand awareness; the growing labor force has resulted in a shift from the unorganized sector to the organized sector market in India. The demand for high fashion products increases incomes, increases trade volumes and increases job opportunities.
Meanwhile, Union Minister Piyush Goyal said on Friday that India’s footwear sector has immense potential and could increase production and exports 10-fold in the near future.
Among individual stocks, Liberty Shoes hit a new high at Rs 402.20, rallying 10% today. In the past month, the company’s stock price has climbed 120%, compared to a 4.6% drop in the S&P BSE Sensex.
On September 24, the company said it was confident of hitting pre-Covid numbers in terms of revenue and profitability. Going forward, the company is targeting 30% growth in 2022-23 and is confident enough to achieve the highest ever revenue and profit before tax (PBT) in 2022-23, with a margin PST of more than 5 percent to match the industry benchmark in the near future.
Campus Activewear also hit a new high at Rs 617.95, up 5% on BSE in intraday trading so far. The stock has surpassed its previous high of Rs 617.10, reached on September 23, 2022. With today’s rally, the stock is up 112% from its issue price of Rs 292 per share .
