5-year performance of top Indian footwear brands

This analysis will explore the five-year performance of India's premier footwear stocks, delving into the details of their market journey.

Relaxo Footwears

Leading Indian firm who owns Sparx brand, Relaxo Footwears, with a market capitalisation of ₹21,190.90 crore, has shown revenue growth from ₹2,292.08 crore in FY19, to ₹2,410.48 crore in FY20, ₹2,359.15 crore in FY21, ₹2,653.27 crore in FY22, and reaching ₹2,782.77 crore in FY23. The net profit journey began at ₹175.44 crore in FY19, increased to ₹226.25 crore in FY20, peaked at ₹291.56 crore in FY21, and then decreased to ₹232.68 crore in FY22 and further to ₹154.47 crore in FY23.

EPS varied from ₹14.15 in FY19, dropped to ₹9.12 in FY20, rose to ₹11.74 in FY21, and then declined to ₹9.36 in FY22 and ₹6.21 in FY23. The net profit margin (NPM) also saw fluctuations, starting at 7.65 per cent in FY19, rising to 9.39 per cent in FY20, reaching a high of 12.36 per cent in FY21, and then falling to 8.77 per cent in FY22 and 5.55 per cent in FY23.

Over the past five years, the stock of the company has delivered a return of 137.08 per cent. During the same period, the company's market share saw an increase, rising from 21.68 per cent to 23.98 per cent. The company maintained a lower debt to equity ratio of 9.79 per cent compared to the industry average of 40.23 per cent.

Liberty Shoes

Liberty Shoes Ltd, valued at ₹629.37 crore in market capitalisation, witnessed revenue growth from ₹602.36 crore in FY19 to ₹652.05 crore in FY20, then dropping to ₹458.06 crore in FY21, rising again to ₹487.82 crore in FY22, and reaching ₹654.33 crore in FY23. Net profit fluctuated, starting at ₹6.84 crore in FY19, dropping to ₹11.00 crore in FY20, then to a low of ₹0.25 crore in FY21, recovering to ₹2.24 crore in FY22, and further to ₹12.91 crore in FY23.

EPS showed a similar trend, beginning at ₹4.02 in FY19, moving to ₹6.45 in FY20, then to ₹0.14 in FY21, improving to ₹1.54 in FY22, and increasing to ₹7.88 in FY23. The NPM also varied, starting at 1.14 per cent in FY19, changing to 1.69 per cent in FY20, dropping to 0.05 per cent in FY21, rising to 0.46 per cent in FY22, and further to 1.97 per cent in FY23.

In the past five years, Liberty Shoes’ stock gave returns of 134.89 per cent. However, during this period, its market share experienced a slight decline, dropping from 6.08 per cent to 5.6 per cent. The company's debt to equity ratio stood at 65.59 per cent, significantly higher than the industry average of 40.23 per cent.

Bata India Ltd

Swiss firm Bata Corporation’s Indian arm, Bata India Ltd, with a market capitalisation of ₹18,711.68 crore, saw its revenue increase from ₹2,928.44 crore in FY19 to ₹3,053.45 crore in FY20, then declining to ₹1,707.30 crore in FY21, improving to ₹2,387.72 crore in FY22, and further to ₹3,451.57 crore in FY23. The net profit was ₹329.66 crore in FY19, then ₹326.92 crore in FY20, followed by a loss of ₹90.28 crore in FY21, and then recovering to ₹100.89 crore in FY22 and ₹319.12 crore in FY23.

EPS also fluctuated, starting at ₹25.65 in FY19, slightly dropping to ₹25.44 in FY20, falling to minus ₹7.02 in FY21, recovering to ₹7.85 in FY22, and reaching ₹24.83 in FY23. The NPM saw a similar trend, with 11.26 per cent in FY19, 10.71 per cent in FY20, minus 5.29 per cent in FY21, 4.23 per cent in FY22, and 9.25 per cent in FY23.

Over the past five years, Bata’s stock has given a modest return of 30.44 per cent. Its market share witnessed a slight decrease, moving from 29.91 per cent to 29.88 per cent in the same timeframe. Additionally, the company's debt to equity ratio was recorded at 54.33 per cent, higher than the industry average of 40.23 per cent.

Mirza International Ltd

Supplier of leather footwear to leading international brands Mirza International's revenue has shown fluctuations over the years from FY19 to FY23, with figures of ₹627.06 crore, ₹1,671.55 crore, ₹1,046.82 crore, ₹1,260.18 crore, and ₹1,151.70 crore respectively. The company’s market capitalisation is approximately ₹831.56 crore. In terms of profitability, the company's net profit has also varied, with ₹26.18 crore, ₹110.44 crore, ₹7.38 crore, ₹47.67 crore, and ₹48.79 crore respectively from FY19 to FY23.

The EPS have similarly fluctuated in the five years from FY19 to FY23, with values of ₹1.89, ₹9.18, ₹0.61, ₹3.96, and ₹4.06. The NPM has been inconsistent, recorded at 4.18 per cent, 6.61 per cent, 0.70 per cent, 3.78 per cent, and 4.24 per cent over these years.

Mirza International’s has given a substantial 513.38 per cent return in the past five years, indicating significant growth and investor confidence. Notably, Mirza International has maintained a healthier debt-to-equity ratio at 28.14 per cent, which is lower than the industry average of 40.23 per cent. However, the company's market share has seen a decline, dropping from 10.84 per cent to 5.63 per cent during the same period.

Note: The above content is only for educational purposes and not a buy/sell recommendation. Please consult your financial advisor before investing.

ALCHEMPro News Desk (DP)