Shares of Liberty Shoes hit a fresh 52-week high of ₹302 on the BSE in Thursday's trade, and the stock is just ₹2 away from its all-time high of ₹304.70, set in August 2014.
In Thursday's intraday trade, the stock opened at ₹290 and rose further to hit a one-year high of ₹302 per share. At 2:00 pm, the stock was trading at ₹290.35, up by 0.33% on the BSE. The stock rose from ₹215.80 to ₹289.85 over the course of the previous two trading sessions, delivering an astounding return of 34.31%.
The stock has been increasing since the beginning of the month, rising from ₹169 to ₹285 level, generating a return of almost 69 percent.
After hitting ₹127.70 in mid-June, which is very close to its 52-week low of ₹124, the stock began gradually rising, and it has since risen 124%. During the last six months, it has risen from ₹144.40 in April 2022, to its current level of 290, representing a return of 101.38 percent at a time when the nifty has fallen by nearly 2.50%.
After reporting its June quarter earnings on August 10, the stock gained more traction. The company posted a net profit of ₹5.47 crore against a net loss of ₹3.06 crore in the same quarter of last fiscal.
Total revenue increased by nearly 65.09% to ₹161.3 crore in the June-end quarter of FY23, compared to ₹97.7 crore in the same period last year.
In Q1FY23, the operating profit increased to ₹17.2 crore from ₹7.8 crore. The EBITDA margin for the June quarter stood at 10.70%, an increase of 276 (bps).
The company's total expenditure during the June 2022 quarter jumped to ₹144 crore, compared with ₹89.9 crore in the corresponding period last year.
Further, Liberty Shoes has a return on equity of 3.10% and a ROCE of 9.92% (5-year average) respectively. It has a price-to-earnings ratio of (45.7x) compared to the peer average of 115.18x.
The promoters hold 59.4 percent of the shares in the company, while regular shareholders own 40 percent of the shares, and mutual funds hold 0.06 percent.
Going forward, analysts expect the Indian footwear market to grow at a CAGR of 8% from Fiscal 2020 to Fiscal 2025 and 21.6% from Fiscal 2021 to Fiscal 2025, making it one of the fastest growing discretionary categories from Fiscal 2021 to Fiscal 2025.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
