Liberty Shoes Ltd.

Consumer Cyclical — Footwear & Accessories · NSE

₹213.50+₹3.97 (+1.89%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Liberty Shoes Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Liberty Shoes Ltd. manufactures and trades in footwear, accessories, and lifestyle products in India and internationally.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees2,602

Annual revenue₹740 Cr

How does it make money?

Turns over ₹740 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 2,602 employees supports ₹28.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹28.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +14% while net margin moved -24% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+14%

Margin effect-24%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.8% is weak

Quality vs. Valuation

Company Quality

41/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

61/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

42.4x

3Y Median

40.2x

40 monthly readings · mean 45.7x · range 26.8x–80.8x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 40.2x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 39% below the peer median of 69.2x.

vs. its own history

Fair

40.2x median over 40 months · +5%

vs. sector peers

Cheap

69.2x median of 4 peers · -39%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

8.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 39% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 4.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 7%✓ 8.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 4.3% CAGR
Latest reported year was -1.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹80 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹364 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.55x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.04

Profitable

Profitable on a per-share basis

ROE

4.8%

Weak

Weak capital efficiency

ROCE

8.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

-1.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-79.5%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹80 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.2%

Weak

Thin margins leave little room for error

Net Margin

1.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.89

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.36

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

218.8 / 231.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹651 Cr	₹636 Cr	₹675 Cr	₹740 Cr	+4.3%
EBITDA	₹61 Cr	₹67 Cr	₹70 Cr	₹65 Cr	+2.2%
EBITDA Margin	9.3%	10.5%	10.3%	8.8%	—
PAT (Net Profit)	₹13 Cr	₹11 Cr	₹14 Cr	₹11 Cr	-4.7%
EPS	₹7.58	₹6.55	₹7.96	₹6.57	-4.7%
ROE	6.5%	5.3%	6.1%	4.8%	—
ROCE	9.5%	9.1%	10.2%	8.8%	—
Total Debt	₹160 Cr	₹147 Cr	₹156 Cr	₹166 Cr	+1.3%
Free Cash Flow	₹94 Cr	₹88 Cr	₹70 Cr	₹80 Cr	-5.3%

🟢 Revenue has grown at 4.3% a year over 3 years.

🟢 EBITDA has grown at 2.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 8.8% over 3 years.

🔴 PAT (Net Profit) has shrunk at 4.7% a year over 3 years.

🔴 EPS has shrunk at 4.7% a year over 3 years.

🔴 ROE has fallen from 6.5% to 4.8% over 3 years (-1.7 pts).

🟡 ROCE has held roughly flat at 8.8% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

🔴 Free Cash Flow has shrunk at 5.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹523 Cr

Total Liabilities

₹289 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹80 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.9%

Corporate Actions

Ex-Dividend Date

22 Sept 2022

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed4 general

Liberty Shoes Ltd. 52 Week Low Streak Continues on Weakness

Univest, 16 Oct

Liberty Shoes (LIBERTSHOE) Share/Stock Price Live, NSE

TechGraph, 09 Oct

DPIIT Extends Footwear Stock Deadline To 2027 Aiding Liberty Shoes’ 12-Month Inventory Liquidations

Sahi, 10 Jul

Liberty Shoes Share Price Jumps 10.87%: Consumer Stock Gains Investor Attention

Kalkine India, 13 MarPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Footwear stocks Liberty Shoes, Khadim, RedTape rally up to 15%; here's why

Business Standard, 28 Jan

Liberty Shoes Share Price rise backed by sector context

Univest, 23 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Revenue growth is negative (-1.7%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑