Liberty Shoes jumps 17% to its highest level in four years with large volumes
Shares of Liberty Shoes hit a more than four-year high of Rs 226.10 on the National Stock Exchange (NSE), as the stock jumped 17% in intraday trading on Wednesday, amid heavy volumes in an otherwise weak market. The shoe company’s stock listed at its highest level since August 2018.
As of 12:38 p.m., the stock was trading up 15% at 222.15 rupees, against a 0.70% drop in the Nifty 50. Average trading volumes over the counter tripled today with almost 2 .75 million shares, representing 16 percent of Liberty Shoes’ total equity, having changed hands on the NSE up to the time of this writing, exchange data shows. The names of the buyers and sellers could not immediately be determined.
As of June 30, 2022, individual shareholders held 5.29 million shares, or 31.02% of the stake in Liberty Shoes, according to shareholding data. Geofin Investments Private Limited, the promoter group company, held 4.47 million shares, or 26.25%, owning the company, according to the data.
Over the past three months, the stock has outperformed the market by jumping 36%, against a 1% decline in the Nifty 50. Moreover, over the past six months, it has climbed almost 70%, against 13% percent upside from the benchmark.
Sector-wise, with the government’s focus on the manufacturing sector, the future potential of the footwear industry is promising, especially for established and organized brands. Continuous changes in lifestyle and shopping habits have also influenced the footwear industry.
“The Indian footwear market is undergoing a unique transformation over the past few years. India’s young population with high aspirations and enhanced fashion quotient is driving the demand especially for casual, sports, athletic and women’s shoes etc. as many brands have made deeper inroads in this space via the EBO channel given the huge growth potential. This has amplified consumer spending, resulting in increasing premiumization and steadily improving ASPs,” according to Motilal Oswal Financial Services.
The main downside risks in the footwear industry are high inflation which could weaken industry demand, rising input and GST costs which could affect gross margin, and competition from foreign brands. growing, the brokerage firm said in an industry report.