Recent Price Movement and Volatility
On the day the new low was recorded, Liberty Shoes Ltd’s share price fell by 5.19%, underperforming the footwear sector which declined by 2.01%. The stock exhibited high intraday volatility of 6.73%, with an intraday low of Rs.243.7 representing a 7.06% drop from the previous close. This decline extends a four-day losing streak during which the stock has shed 11.13% of its value.
Trading below all key moving averages – including the 5-day, 20-day, 50-day, 100-day, and 200-day averages – the stock’s technical indicators signal sustained weakness. This contrasts with the broader market, where the Sensex recovered from an early negative opening to close 0.12% higher at 83,679.07, just 2.96% shy of its 52-week high of 86,159.02.
Long-Term Performance and Relative Comparison
Over the past year, Liberty Shoes Ltd has delivered a total return of -47.40%, a stark contrast to the Sensex’s positive 8.10% gain over the same period. This underperformance extends beyond the last 12 months, with the stock lagging the BSE500 index across one-year, three-year, and three-month timeframes. The 52-week high for the stock was Rs.510, underscoring the magnitude of the recent decline.
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Financial Metrics and Profitability Trends
Liberty Shoes Ltd reported a quarterly profit after tax (PAT) of Rs.1.96 crore in the September 2025 quarter, representing a decline of 42.1% compared to the average of the previous four quarters. Interest expenses for the nine months ended showed a significant increase of 25.97%, reaching Rs.11.69 crore. This rise in interest costs has impacted the company’s operating profit to interest coverage ratio, which stands at a low 3.79 times for the quarter, indicating tighter financial flexibility.
Profitability has also been under pressure over the past year, with overall profits falling by 14.4%. Despite these challenges, the company maintains a return on capital employed (ROCE) of 8.8%, which is considered very attractive relative to its valuation metrics. The enterprise value to capital employed ratio is 1.6, suggesting that the stock is trading at a discount compared to its peers’ historical averages.
Sector and Market Context
The footwear sector, in which Liberty Shoes operates, has experienced a decline of 2.01% on the day the stock hit its 52-week low. This sectoral weakness, combined with the stock’s own performance, has contributed to the downward pressure. Meanwhile, the broader consumer durables sector has also faced headwinds, reflecting a cautious market environment.
In contrast, mega-cap stocks have led the market recovery, supporting the Sensex’s modest gains. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating a generally positive medium-term trend for the broader market, which Liberty Shoes has not mirrored.
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Shareholding and Market Capitalisation
The majority shareholding in Liberty Shoes Ltd remains with the promoters, maintaining a stable ownership structure. The company’s market capitalisation grade is rated 4, reflecting its mid-tier valuation status within the footwear sector. The Mojo Score stands at 31.0 with a Mojo Grade of Sell, an improvement from the previous Strong Sell rating assigned on 11 Nov 2025, indicating a slight easing in negative sentiment.
Despite the recent downgrade in rating, the stock’s performance and financial indicators continue to reflect challenges in both near-term results and longer-term returns.
Summary of Key Price and Performance Indicators
To summarise, Liberty Shoes Ltd’s stock has reached a new 52-week low of Rs.243.7, down from its 52-week high of Rs.510. The stock has declined by 47.40% over the past year, significantly underperforming the Sensex and its sector. The recent four-day consecutive fall and high intraday volatility underscore the current market pressures. Financial results reveal declining profits and rising interest expenses, while valuation metrics suggest the stock is trading at a discount relative to peers.
These factors collectively illustrate the complex environment facing Liberty Shoes Ltd as it navigates a challenging period in the footwear industry and broader market conditions.
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