Check Before You Invest : Liberty Shoes Ltd

BSE: 526596 NSE: LIBERTSHOE ISIN: INE557B01019

| Sector: FMCG | Industry: Footwear

Snapshot

Q.1 Which industry/sub-sector does Liberty Shoes Ltd belong to?

Liberty Shoes Ltd belongs to the FMCG sector, operating specifically within the Footwear segment.

Q.2 Is Liberty Shoes Ltd a good quality company?

Liberty Shoes Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Liberty Shoes Ltd undervalued or overvalued?

Liberty Shoes Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Liberty Shoes Ltd a good buy now?

Liberty Shoes Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Liberty Shoes Ltd?

Liberty Shoes Ltd revenue growth is 6.1% for FY-2025, which is above its 5-year CAGR of 0.71%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Liberty Shoes Ltd?

Liberty Shoes Ltd Return on capital employed is 11.81% for FY-2025, which is above its 5-year historical median of 10.23%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Liberty Shoes Ltd?

Liberty Shoes Ltd Return on Asset is 2.82%, which is above its 5-year historical median of 2.39%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Liberty Shoes Ltd?

Liberty Shoes Ltd Return on equity is 6.28% for FY-2025, which is above its 5-year historical median of 5.48%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Liberty Shoes Ltd?

Liberty Shoes Ltd Cash conversion cycle is 104 days, in line with its 5-year historical median of 105 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.45	1.39
ROE	6.28	5.48
ROCE	11.81	10.23
Cash Conversion Cycle	104 days	105 days

Q.6 Gross Profit margin of Liberty Shoes Ltd?

Liberty Shoes Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.1% for FY-2025, which is in line with its 5-year median of 8.1%, indicating stable margins.

Q.7 Operating Profit Margin of Liberty Shoes Ltd?

Liberty Shoes Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.12% for FY-2025, which is above its 5-year median of 9.3% indicating increasing margins.

Q.8 Net Profit Margin of Liberty Shoes Ltd?

Liberty Shoes Ltd Net Profit Margin is 2.01% for FY-2025, is above with its 5-year median of 1.75%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.1	8.1
Operating Profit Margin	10.12	9.3
Net Profit Margin	2.01	1.75

Q.9 Debt to Equity ratio of Liberty Shoes Ltd?

Liberty Shoes Ltd Debt-to-Equity ratio is 0.33, which is lower with the industry average of 0.35, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Liberty Shoes Ltd?

Liberty Shoes Ltd Debt to cash flow from operations is 1, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Liberty Shoes Ltd?

Promoters hold 59.10% of the Liberty Shoes Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Liberty Shoes Ltd vs industry peers?

Liberty Shoes Ltd revenue CAGR is 0.71%, compared to the industry median CAGR of 0.71%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	6.1	0.7
Gross Profit Growth	3.7	-0.7
Operating Profit Growth	4.6	-1.3
Net Profit Growth	27.3	-2.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.45	1.01
ROE	6.28	5.53
ROCE	11.81	10.23
Cash Conversion Cycle (days)	103.86	87

Valuation & price assessment

Q.1 Stock return of Liberty Shoes Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	3.6%	13.3%	0.2%	-40.6%

Q.3 Valuation ratios of Liberty Shoes Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	36.56	40.73	32.02
Price to Book	1.84	2.18	1.33
Price to Sales	0.59	0.70	0.96
EV to EBITDA	7.29	8.27	11.55

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