Top Footwear in Stocks in India: People tend to do a lot of research before buying, especially fashionable products. Similar should be the approach of investors before investing in the markets.
Footwear is one such most sought-after fashion products in the speciality retail segment. In this article, we will take a look at the footwear industry and also identify the top footwear stocks in India. Keep reading to find out.
Industry overview
The footwear industry in India is divided into two segments- leather and non-leather. Around 75% of production in the non-leather footwear industry comes from the unorganized sector in India. This includes micro, small, and medium enterprises (MSMEs).
India, the 2nd largest consumer, and producer of footwear in the world are projected to increase 8 folds by 2030. India is the 2nd largest producer of footwear, 2nd largest exporter of leather garments, and the 5th largest exporter of leather goods. This presents an India to the world, full of opportunities in the footwear sector.
The changing living habits, growing economies, and growth and awareness in health, especially due to the Covid pandemic, and the reopening of lockdowns have given a boost to the demand for footwear across the globe.
Further, the demand for fashionable, trendy, athletic, and sports shoes has opened the scope of development and growth for the footwear Industry.
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Top footwear stocks in India
Here is the list of top footwear stocks in India:
footwear stocks in India #1 – Relaxo Footwear Ltd
| Face Value (₹): | 1 | ROE (%): | 20.61 |
| Market Cap (Cr): | 32,384 | Net Profit Margin: | 12.36 |
| EPS (₹): | 11 | Current Ratio: | 2.4 |
| Stock P/E (TTM): | 119.09 | Debt to Equity: | 0 |
| Dividend Yield (%): | 0.19 | Promoter’s Holdings (%): | 70.78 |
Relaxo Footwears Limited is an Indian multinational footwear manufacturer. It is the largest footwear manufacturer in India in terms of volume and second-largest in terms of revenue.
It is a Fortune 500 (India) company for its quality products & affordable pricing. Its most popular brands include Relaxo, Sparx, Flite & Bahamas which are leaders in their space.
Coming to the financials of the company, It posted a net profit of Rs 291.56 Cr which saw a 28.87% increase from the previous year. While the total net sales were Rs 2,359.15 Cr.
As per their annual report, Relaxo sold a total of 19.07 Crore pairs of shoes and added 8 new retail outlets in FY21. The key highlight of Relaxo being its a company with zero debt and a Zero promoter pledge.
The cash conversion ratio shows how long it takes the company to convert its inventory to cash. Relaxo has a ratio of 97.14.
footwear stocks in India #2 – Bata India Ltd
| Face Value (₹): | 5 | ROE (%): | -4.89 |
| Market Cap (Cr): | 25,633 | Net Profit Margin: | -5.23 |
| EPS (₹): | 2 | Current Ratio: | 2.61 |
| Stock P/E (TTM): | 0 | Debt to Equity: | 0 |
| Dividend Yield (%): | 0.2 | Promoter’s Holdings (%): | 52.96 |
Bata India Limited is one of the largest retailers and manufacturers of footwear in the country. It is a part of the Bata Shoe Organization.
They have a strong pan-India retail presence with 1526 stores across cities, including franchisee stores. Along with that, it also has 4 Strategically located manufacturing units.
In the wake of the pandemic, they launched hyperlocal channels such as Bata ChatShop and Bata Store on Wheels.
The company sold 31.97 Million footwear pairs in FY21. However, Bata’s operations remanded affected by the pandemic as they reported a net loss of Rs 89.31 has earned a revenue of Rs 1,708.48 crores in FY21.
This company is debt-free and has a Zero promoters pledge. Bata on average takes around 177 days to convert its inventory into cash.
footwear stocks in India #3 – Metro Brands Ltd
| Face Value (₹): | 5 | ROE (%): | 7.98 |
| Market Cap (Cr): | 16,081 | Net Profit Margin: | 8.15 |
| EPS (₹): | 3 | Current Ratio: | 2.66 |
| Stock P/E (TTM): | 235.18 | Debt to Equity: | 0 |
| Dividend Yield (%): | 0.25 | Promoter’s Holdings (%): | 74.27 |
Metro Brands, previously known as Metro Shoes, is a multi-brand footwear retail chain in India. The company operates from a network of 598 Metro showrooms in 136 cities in India.
Some of the well-known brands include Metro, Mochi, Walkway, Da Vinchi, and J. Fontini, as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop.
Metro brands recently went public and got listed on the stock exchanges in December 2021. The net profit of the company was Rs 68.20 Crore and the net revenue earned was Rs 800 Crore in FY21.
The company has a zero promoter pledge. The cash conversion ratio is 180 days which means that the company needs more days than its peers to receive cash.
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footwear stocks in India #4 – Khadim India Ltd
| Face Value (₹): | 10 | ROE (%): | -15.24 |
| Market Cap (Cr): | 505 | Net Profit Margin: | -4.05 |
| EPS (₹): | 6 | Current Ratio: | 1.19 |
| Stock P/E (TTM): | 43.75 | Debt to Equity: | 0.53 |
| Dividend Yield (%): | 0 | Promoter’s Holdings (%): | 59.86 |
Khadim India is the second-largest footwear retailer in India. It operates through two distinct business verticals, Retail, and Distribution. As of 2021, the company has around 757 retail outlets and have an extensive network of 575 distributors across the country.
The company offers a premium as well as an affordable range of footwear. Khadim saw a decline in revenue by 18.9% to Rs 626.18 Crore and a loss of Rs 32.94 Crores in FY21.
The Company outsourced 86% of its product requirement in the year. The promoter’s pledge is zero. The company needs 160 days to convert its inventory into cash.
List of all Footwear Stocks In India
| Sl.no | Company | Market Cap (Rs in Cr) |
|---|---|---|
| 1 | Relaxo Footwear | 31,612.36 |
| 2 | Bata India | 26,107.16 |
| 3 | Metro Brands | 16,154.69 |
| 4 | Mirza Intl | 1,759.48 |
| 5 | Khadim India | 479.79 |
| 6 | Sreeleathers Ltd | 413.55 |
| 7 | Liberty Shoes | 275.88 |
| 8 | Amin Tannery | 42.33 |
| 9 | Mayur Leather | 3.48 |
In Closing
India’s footwear market is estimated to reach $15.5 billion by 2022, from $10.6 billion in 2019. The leather and footwear industry has very good potential for growth and development both on the domestic front and in exports.
This can be a chance for the investors to earn better returns. That’s all for this article on top footwear stocks in India, let us know what you think in the comments below. Happy Investing!
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Informative content, thanks for sharing.