Stock Price Movement and Market Context
On 20 Jan 2026, Liberty Shoes Ltd’s stock recorded a day change of +2.93%, outperforming its sector by 3.41%. However, this modest intraday gain was insufficient to offset the broader decline that pushed the stock to its 52-week low of Rs.237. The stock’s price remains above its 5-day moving average but continues to trade below its 20-day, 50-day, 100-day, and 200-day moving averages, indicating persistent downward momentum over multiple time horizons.
In comparison, the Sensex opened flat but subsequently declined by 321.66 points (-0.43%) to close at 82,885.72, remaining 3.95% below its 52-week high of 86,159.02. The benchmark index has experienced a three-week consecutive fall, losing 3.35% over this period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, suggesting some underlying resilience in the broader market despite recent weakness.
Financial Performance and Profitability Trends
Liberty Shoes Ltd’s recent quarterly results have contributed to the subdued investor sentiment. The company reported a Profit Before Tax (PBT) of Rs.3.00 crore for the quarter ended September 2025, representing a 43.0% decline compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) for the same period fell by 42.1% to Rs.1.96 crore. These declines highlight a contraction in profitability over the near term.
Interest expenses have increased notably, with a 25.97% rise over the nine-month period, reaching Rs.11.69 crore. This escalation in finance costs has likely exerted additional pressure on the company’s bottom line. Over the past year, Liberty Shoes Ltd’s profits have decreased by 14.4%, further underscoring the challenges faced in maintaining earnings growth.
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Long-Term Performance and Valuation Metrics
Over the last twelve months, Liberty Shoes Ltd has delivered a total return of -48.17%, significantly underperforming the Sensex, which gained 7.54% during the same period. The stock has also lagged behind the BSE500 index over the last three years, one year, and three months, reflecting sustained underperformance relative to broader market benchmarks.
The 52-week high for the stock was Rs.481.25, indicating that the current price level represents a decline of over 50% from its peak. This steep fall has brought the stock to a valuation that some may consider attractive based on certain metrics. The company’s Return on Capital Employed (ROCE) stands at 8.8%, and it maintains an enterprise value to capital employed ratio of 1.5, which is comparatively low relative to its peers’ historical averages.
Despite these valuation factors, the stock’s Mojo Score remains subdued at 31.0, with a Mojo Grade of Sell as of 11 Nov 2025, downgraded from a previous Strong Sell rating. The Market Cap Grade is rated 4, indicating a mid-tier market capitalisation relative to other listed companies.
Shareholding and Sectoral Positioning
Liberty Shoes Ltd operates within the footwear industry and sector, where it faces competitive pressures and market dynamics that have influenced its recent performance. The majority shareholding rests with promoters, who continue to hold significant stakes in the company.
The stock’s recent price action and financial results suggest that the company is navigating a challenging environment, with profitability contraction and elevated interest costs weighing on overall performance.
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Summary of Key Indicators
To summarise, Liberty Shoes Ltd’s stock has reached a new 52-week low of Rs.237, reflecting a significant decline from its 52-week high of Rs.481.25. The company’s quarterly earnings have contracted sharply, with PBT and PAT falling by over 40% compared to recent averages. Interest expenses have risen by nearly 26% over nine months, adding to financial strain.
While valuation metrics such as ROCE and enterprise value to capital employed ratios suggest some degree of attractiveness, the stock’s overall performance remains below market and sector benchmarks. The Mojo Grade of Sell and a score of 31.0 further indicate cautious sentiment around the stock’s near-term prospects.
Market conditions, including a three-week decline in the Sensex and the stock’s position below key moving averages, reinforce the subdued environment in which Liberty Shoes Ltd is currently trading.
Conclusion
Liberty Shoes Ltd’s fall to its 52-week low underscores the challenges faced by the company in maintaining profitability and market valuation amid a competitive footwear sector. The stock’s recent price action and financial results highlight a period of adjustment and recalibration for the company, with valuation metrics reflecting the market’s current assessment of its position.
Investors and market participants will continue to monitor the company’s financial disclosures and sector developments as Liberty Shoes Ltd navigates this phase of its market journey.
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