Stock Performance and Market Context
On 21 Jan 2026, Liberty Shoes Ltd’s share price touched an intraday low of Rs.216.75, representing a 4.01% drop during the trading session. This new low comes after three consecutive days of declines, during which the stock has lost 9.59% in returns. The day’s overall change was -1.93%, aligning with the footwear sector’s performance on the day.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. This technical positioning underscores the challenges the stock faces in regaining upward traction.
Meanwhile, the broader market environment has also been subdued. The Sensex opened 385.82 points lower and was trading at 81,776.53, down 0.49% at the time of reporting. The index itself is below its 50-day moving average, although the 50DMA remains above the 200DMA. Notably, the Sensex has experienced a three-week consecutive decline, losing 4.65% over this period.
Financial Performance and Profitability Concerns
Liberty Shoes Ltd’s recent quarterly results have contributed to the stock’s subdued performance. The company reported a Profit Before Tax (PBT) of Rs.3.00 crore for the quarter, which is a 43.0% decline compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) fell by 42.1% to Rs.1.96 crore over the same comparative period.
Interest expenses have also increased significantly, with a 25.97% rise over the nine-month period, reaching Rs.11.69 crore. This increase in financial costs has weighed on the company’s bottom line and overall profitability metrics.
Over the past year, Liberty Shoes Ltd’s profits have contracted by 14.4%, reflecting pressures on earnings alongside the stock’s price decline. The company’s return on capital employed (ROCE) stands at 8.8%, which, while modest, indicates some operational efficiency relative to capital utilisation.
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Valuation and Comparative Analysis
Despite the recent price weakness, Liberty Shoes Ltd maintains a very attractive valuation profile. The company’s enterprise value to capital employed ratio is 1.4, which is below the average historical valuations of its peers in the footwear sector. This discount suggests that the market is pricing in the company’s current challenges.
However, the stock’s long-term performance has been below par. Over the last year, it has delivered a negative return of 53.15%, significantly underperforming the Sensex, which gained 7.83% during the same period. The stock has also lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent underperformance relative to broader market benchmarks.
Liberty Shoes Ltd’s 52-week high was Rs.481.25, highlighting the extent of the decline from its peak to the current low of Rs.216.75. This represents a drop of over 54% from the highest price point in the past year.
Shareholding and Market Sentiment
The majority shareholding in Liberty Shoes Ltd remains with the promoters, who continue to hold a controlling stake. This stable ownership structure provides continuity in management and strategic direction, although it has not prevented the recent price decline.
The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, reflecting the overall negative sentiment and financial metrics. This grade was downgraded from a Strong Sell on 11 Nov 2025, indicating a slight improvement in outlook, albeit still within a negative framework.
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Summary of Key Metrics
To summarise, Liberty Shoes Ltd’s recent stock performance reflects a combination of subdued earnings, rising interest costs, and broader market weakness. The stock’s fall to Rs.216.75 marks a significant technical low, with the share price now trading well below all major moving averages. The company’s profitability has declined sharply in recent quarters, with PBT and PAT falling by over 40% compared to prior averages.
While valuation metrics suggest the stock is trading at a discount relative to peers, the sustained negative returns over the past year and longer-term underperformance highlight ongoing challenges. The footwear sector itself has faced headwinds, and Liberty Shoes Ltd’s results have mirrored this trend.
Investors monitoring the stock will note the stable promoter holding and the recent Mojo Grade adjustment from Strong Sell to Sell, indicating a nuanced but still cautious outlook.
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