Lehar Footwears Forms Death Cross Signalling Potential Bearish Trend

The Death Cross is widely regarded by technical analysts as a warning sign of trend deterioration. For Lehar Footwears, this crossover occurred on 18 Nov 2025, following a period where the stock’s shorter-term price movements have lost strength relative to its longer-term trend. This technical development coincides with a revision in the company’s Mojo Grade from Buy to Hold as of 12 Nov 2025, reflecting an adjustment in evaluation amid evolving market conditions.

Examining Lehar Footwears’ recent price performance reveals a mixed picture. Over the past year, the stock has recorded a gain of 14.48%, outperforming the Sensex’s 9.48% rise. However, more recent trends show signs of strain. The one-week and three-month performances stand at -10.61% and -10.56% respectively, contrasting with the Sensex’s positive returns of 0.96% and 4.18% over the same periods. Year-to-date, the stock has declined by 1.62%, while the Sensex has advanced by 8.36%.

From a valuation standpoint, Lehar Footwears trades at a price-to-earnings (P/E) ratio of 19.96, which is below the footwear industry average P/E of 30.89. This suggests that the stock is priced more conservatively relative to its sector peers. The company’s market capitalisation stands at ₹433 crores, categorising it as a micro-cap stock within the footwear industry.

Technical indicators provide further insight into the stock’s current momentum. The daily moving averages are bearish, consistent with the Death Cross signal. Weekly and monthly MACD readings indicate bearish and mildly bearish trends respectively, while the weekly KST (Know Sure Thing) oscillator also points to bearish momentum. Conversely, the weekly RSI (Relative Strength Index) shows bullish tendencies, and monthly Bollinger Bands suggest a bullish outlook, indicating some mixed signals in the short and medium term.

Lehar Footwears’ longer-term performance remains notable despite recent weakness. Over three years, the stock has appreciated by 162.49%, significantly outpacing the Sensex’s 37.31% gain. The five-year and ten-year returns are even more pronounced, at 1301.42% and 353.78% respectively, compared to the Sensex’s 91.65% and 232.28% over the same periods. These figures highlight the company’s historical strength and growth potential, though the recent technical signals warrant cautious observation.

On the daily trading front, Lehar Footwears recorded a positive change of 0.72% on the day of the Death Cross trigger, outperforming the Sensex which declined by 0.33%. This intraday resilience may reflect short-term buying interest despite the broader technical caution.

In summary, the formation of the Death Cross in Lehar Footwears signals a potential shift towards a bearish trend, highlighting a weakening in the stock’s medium-term momentum. While the company’s long-term performance and valuation metrics remain relatively favourable, the recent technical indicators and price action suggest investors should monitor the stock closely for further developments. The mixed signals from various technical tools underscore the importance of a balanced approach when analysing Lehar Footwears’ near-term prospects.

Investors may consider these technical and fundamental factors in conjunction with broader market trends and sector dynamics before making portfolio decisions related to Lehar Footwears.

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