Recent Price Movement and Market Context
On 17 Dec 2025, Liberty Shoes recorded its lowest price in the past year at Rs.272.5, continuing a sequence of declines that have seen the stock lose approximately 3.57% over the last five days. This recent performance contrasts with the broader sector, where Liberty Shoes underperformed by 1.58% today. The stock’s day change registered a fall of 3.19%, highlighting the persistent selling pressure.
Technical indicators show Liberty Shoes trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a bearish trend in the short to long term, with the stock currently distant from its 52-week high of Rs.563.
Meanwhile, the broader market has experienced volatility. The Sensex opened 176.40 points higher but reversed course to close down by 391.90 points at 84,464.36, a decline of 0.25%. Despite this, the Sensex remains close to its 52-week high, trading just 2.01% below the peak of 86,159.02. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day average, indicating underlying market strength contrasting with Liberty Shoes’ performance.
Financial Performance Highlights
Liberty Shoes’ financial results have reflected pressures in recent quarters. The profit before tax (PBT) for the quarter ending September 2025 stood at Rs.3.00 crore, showing a decline of 43.0% compared to the average of the previous four quarters. Similarly, the profit after tax (PAT) for the same period was Rs.1.96 crore, down by 42.1% relative to the prior four-quarter average.
Interest expenses over the nine months reached Rs.11.69 crore, representing a growth of 25.97%. This increase in interest costs may have contributed to the compression of profitability margins. Over the past year, Liberty Shoes’ profits have fallen by 14.4%, aligning with the stock’s negative return of 49.97% during the same period.
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Long-Term Performance and Valuation Metrics
Over the last year, Liberty Shoes has generated a return of -49.97%, significantly underperforming the Sensex, which recorded a positive return of 4.72% during the same period. The stock has also lagged behind the BSE500 index over the past three years, one year, and three months, indicating sustained challenges in maintaining market value relative to broader benchmarks.
From a valuation perspective, Liberty Shoes presents a return on capital employed (ROCE) of 8.8%, accompanied by an enterprise value to capital employed ratio of 1.6. These figures suggest a valuation that is attractive relative to its peers’ historical averages. Despite the subdued price performance, the stock trades at a discount compared to the average valuations within the footwear sector.
Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.
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Sector and Industry Context
Liberty Shoes operates within the footwear industry, a sector that has experienced mixed performance amid evolving consumer preferences and competitive pressures. The stock’s recent underperformance relative to the sector highlights the challenges faced by the company in maintaining market share and profitability.
While the Sensex and broader market indices have shown resilience, Liberty Shoes’ price action and financial metrics indicate a divergence from the general market trend. The stock’s position below all major moving averages further underscores the current bearish sentiment among market participants.
Summary of Key Concerns
The stock’s fall to Rs.272.5, its lowest level in 52 weeks, reflects a combination of factors including subdued quarterly profits, rising interest expenses, and a prolonged period of negative returns. The decline over the past year and recent months has been marked, with the stock losing nearly half its value compared to the Sensex’s positive trajectory.
Trading below all significant moving averages suggests that the stock remains in a downtrend, with limited technical support in the near term. The increase in interest costs and contraction in profit margins have contributed to the cautious market stance on Liberty Shoes.
Conclusion
Liberty Shoes’ current valuation metrics indicate a discount relative to peers, but the stock’s recent price action and financial results highlight ongoing pressures. The footwear sector’s competitive environment and the company’s financial performance have combined to weigh on the stock, culminating in the fresh 52-week low of Rs.272.5. Market participants will continue to monitor the stock’s trajectory in the context of broader sector and market movements.
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