Liberty Shoes Ltd Stock Falls to 52-Week Low of Rs.210.05

Intraday Price Movement and Market Context

On 27 Jan 2026, Liberty Shoes Ltd opened with a gap down of -8.67%, hitting an intraday low of Rs.210.05, the lowest level in the past 52 weeks. Despite a modest recovery during the session, the stock’s intraday high was Rs.238, still well below its previous levels. The stock outperformed its sector by 1.61% on the day, yet remained below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.

In contrast, the broader market showed resilience with the Sensex recovering from an initial decline of 100.91 points to close 387.58 points higher at 81,824.37, a gain of 0.35%. While mega-cap stocks led the market rally, Liberty Shoes’ performance diverged notably from this trend.

Long-Term Performance and Relative Underperformance

Over the last 12 months, Liberty Shoes Ltd has delivered a negative return of -38.72%, significantly underperforming the Sensex, which posted a positive return of 8.57% over the same period. This underperformance extends beyond the one-year horizon, with the stock lagging the BSE500 index across one-year, three-month, and three-year timeframes. The 52-week high for the stock was Rs.475, underscoring the steep decline it has experienced.

Financial Metrics and Profitability Trends

The company’s recent quarterly results have reflected a contraction in profitability. Profit Before Tax (PBT) for the quarter stood at Rs.3.00 crore, representing a decline of 43.0% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) fell by 42.1% to Rs.1.96 crore in the latest quarter. These figures highlight a challenging earnings environment for Liberty Shoes Ltd.

Interest expenses have increased notably, with a 25.97% rise over the past nine months, reaching Rs.11.69 crore. This escalation in finance costs may be exerting additional pressure on the company’s bottom line.

Valuation and Capital Efficiency

Despite the subdued earnings performance, Liberty Shoes Ltd maintains a Return on Capital Employed (ROCE) of 8.8%, which is considered moderately attractive within its sector. The stock’s enterprise value to capital employed ratio stands at 1.4, indicating a valuation discount relative to its peers’ historical averages. This suggests that the market is pricing in the company’s recent challenges while recognising some underlying asset value.

Shareholding and Market Sentiment

The majority shareholding remains with the promoters, who continue to hold a controlling stake in the company. The stock’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, an improvement from the previous Strong Sell rating assigned on 11 Nov 2025. This adjustment reflects a slight easing in negative sentiment, although the overall outlook remains cautious.

Sector and Market Comparison

Within the footwear industry, Liberty Shoes Ltd’s recent performance contrasts with broader sector trends. While the stock has declined sharply, the sector has seen mixed results, with some indices such as NIFTY MEDIA and NIFTY REALTY also hitting 52-week lows today. The Sensex’s recovery and gains in mega-cap stocks further highlight the divergence between Liberty Shoes and the broader market.

Trading below all major moving averages indicates that the stock remains in a downtrend, with resistance levels likely to be encountered at these averages. The gap down opening and intraday volatility reflect ongoing uncertainty among market participants regarding the company’s near-term prospects.

Profitability and Returns Over Time

Over the past year, Liberty Shoes Ltd’s profits have declined by 14.4%, compounding the negative returns experienced by shareholders. This decline in profitability, coupled with rising interest expenses, has contributed to the stock’s subdued performance and valuation pressures.

Despite these challenges, the company’s valuation metrics suggest that it is trading at a discount relative to its historical norms and peer group, which may be indicative of market expectations for continued subdued performance in the near term.

Summary of Key Data Points

To summarise, Liberty Shoes Ltd’s stock has reached a 52-week low of Rs.210.05, down from a high of Rs.475 within the last year. The stock’s one-year return of -38.72% contrasts with the Sensex’s positive 8.57% return. Quarterly earnings have declined significantly, with PBT and PAT falling by over 40% compared to previous quarters. Interest costs have increased by nearly 26% over nine months. The stock trades below all major moving averages and carries a Mojo Grade of Sell, reflecting cautious market sentiment.

The company’s ROCE of 8.8% and enterprise value to capital employed ratio of 1.4 indicate a valuation discount relative to peers, despite the recent earnings contraction. Promoter shareholding remains dominant, providing continuity in ownership structure.

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