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Liberty Shoes Ltd. Stock Analysis

Small Cap
Evaluated by 788 users | BSE: 526596 | NSE: LIBERTSHOE |
Footwear
Liberty Shoes was incorporated in 1954 by three visionaries Mr. D P Gupta, Mr. P D Gupta and Mr. R K Bansal from Karnal (Haryana).It is the only company Indian company to be among the top 5 manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million.The company...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.02%6.75%6.62%9.62%10.71%7.84%6.09%6.11%6.09%6.03%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 298333336484526454497544602652
Y-o-Y Gr. Rt.-11.8%1%43.9%8.6%-13.6%9.5%9.4%10.7%8.3%
Adjusted EPS (Rs.) 5.944.624.757.9410.316.474.134.144.084.63
Y-o-Y Gr. Rt.--22.2%2.8%67.2%29.9%-37.3%-36.2%0.2%-1.5%13.5%
Book Value per Share (Rs.) 83.1187.5991.880.7385.0791.0694.8998.77102.78109.24
Adjusted Net Profit 10.17.98.113.517.61177.177.9
Net Op. Cash Flow (Rs. Cr.) 7.610.826.911.935.13922.532.228.7153
Debt to Cash Flow from Ops 12.018.743.99.83.953.466.353.613.790.81
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Liberty Shoes Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.1%4.4%9.4%8.3%
Adjusted EPS -2.7%-14.8%3.9%13.5%
Book Value per Share 3.15.14.86.3
Share Price 5.9% -7.3% -17.9% 13.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 7.425.415.299.2112.437.354.444.284.044.37
Operating Profit Margin (%) 8.398.878.478.58.069.427.717.46.869.32
Net Profit Margin (%) 3.42.362.412.83.342.431.421.31.151.21
Debt to Equity 0.640.630.670.850.960.870.880.690.620.67
Working Capital Days 218220231178186224211210192217
Cash Conversion Cycle 10788102849611211510999100
Entity Percentage Holding
Promoters 59.30%
Non-Institutions 40.70%
Pledged *0.000.060.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Liberty Shoes Ltd.'s performance infers:

Liberty Shoes Ltd. earnings have declined by -14.8%, whereas share price has depreciated -7.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Liberty Shoes Ltd. share prices over the last 10 years. Here is what we found out:

Liberty Shoes Ltd. share price has depreciated 3% annually over the past ten years.

Liberty Shoes was incorporated in 1954 by three visionaries Mr. D P Gupta, Mr. P D Gupta and Mr. R K Bansal from Karnal (Haryana).

It is the only company Indian company to be among the top 5 manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million.

The company operates state of the art manufacturing facilities located at Gharaunda, Libertypuram, Karnal, Uttaranchal,

Ponta Sahib and Roorkee. The company has a production capacity of 50,000 pairs of

Liberty Shoes was incorporated in 1954 by three visionaries Mr. D P Gupta, Mr. P D Gupta and Mr. R K Bansal from Karnal (Haryana).

It is the only company Indian company to be among the top 5 manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million.

The company operates state of the art manufacturing facilities located at Gharaunda, Libertypuram, Karnal, Uttaranchal,

Ponta Sahib and Roorkee. The company has a production capacity of 50,000 pairs of footwear a day.

Liberty shoes markets its products through a channel of 150 distributors, 350 exclusive showrooms and over 6000 multi-brand outlets, with a presence in over 25 countries including France, Italy, and Germany.

The company has two subsidiaries namely Liberty Retail Revolutions (LRRL) engaged in footwear retailing and Liberty

Foot Fashion Middle East FZE, Dubai set up for global retailing. LRRL has 33 retail stores spread over the major cities in India.

The company has entered into 49:51 joint venture with Pantaloon Retail India has establish 25 stores retail footwear stores.

Products

Company manufactures stylish footwear for all age group and gender. Its in-house research and development team focuses on developing new design for footwear segment.

Company has created brands like Coolers, Freedom, Footfun, Fortune, Gliders, Senorita, Tiptopp, Perfect, Fortune, Force 10 are among others.

Outlook

The company focuses on developing new designs, explore new markets and reduce its dependence on the imported contents of raw materials.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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