Liberty Shoes Stock Falls to 52-Week Low of Rs.272.6 Amidst Continued Underperformance

Stock Price Movement and Market Context

On 10 Dec 2025, Liberty Shoes opened sharply lower, reflecting a gap down of 3.44% from the previous close. The stock traded steadily at Rs.272.6 throughout the day, touching this intraday low which now stands as its lowest price point in the past year. This performance contrasts with the broader market, where the Sensex advanced by 0.21%, closing at 84,847.34 points after a flat start. The Sensex remains within 1.55% of its 52-week high of 86,159.02, supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average.

In comparison, Liberty Shoes has underperformed notably, with its stock price trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. The footwear sector, to which Liberty Shoes belongs, also saw the stock underperform by 4.03% relative to its sector peers on the same day.

Long-Term and Recent Performance Metrics

Over the last twelve months, Liberty Shoes has recorded a price return of -44.82%, a stark contrast to the Sensex’s positive return of 4.09% over the same period. The stock’s 52-week high was Rs.563, indicating a substantial decline from its peak. This downward trajectory extends beyond the last year, with the stock also underperforming the BSE500 index over the past three years and the last three months.

Profitability metrics have also reflected this trend. The company’s 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 quarter was Rs.1.96 crore, down by 42.1% relative to the prior four-quarter average. Interest expenses for the nine months ending September 2025 increased by 25.97%, reaching Rs.11.69 crore, which may have contributed to the pressure on net profitability.

Valuation and Financial Ratios

Despite the recent price decline and earnings contraction, Liberty Shoes exhibits a return on capital employed (ROCE) of 8.8%, which is considered moderate within the footwear industry. The company’s enterprise value to capital employed ratio stands at 1.7, indicating a valuation level that is relatively attractive compared to its historical averages and peer group valuations. This suggests that the stock is trading at a discount relative to its sector counterparts.

However, the company’s profitability has shown a downward trend over the past year, with profits falling by 14.4%. This decline in earnings, coupled with rising interest expenses, has likely contributed to the subdued market sentiment and the stock’s movement to its 52-week low.

Shareholding and Market Capitalisation

Liberty Shoes remains majority-owned by its promoters, maintaining a stable shareholding structure. The company’s market capitalisation grade is rated at 4, reflecting its mid-tier position in terms of market value within the footwear sector.

The stock’s day-to-day volatility has been evident, with the current trading price well below all key moving averages, signalling a period of sustained weakness. This is in contrast to the broader market environment where small-cap stocks have shown leadership, with the BSE Small Cap index gaining 0.63% on the same day.

Summary of Recent Trading and Sector Comparison

Liberty Shoes’ current trading price of Rs.272.6 represents a significant decline from its 52-week high of Rs.563, reflecting a loss of more than 50% over the period. The stock’s performance has lagged behind the Sensex and the broader footwear sector, which has seen more stable price movements. The company’s financial results for the recent quarter and nine-month period indicate pressures on profitability and rising financing costs.

While the Sensex and small-cap indices have shown resilience and modest gains, Liberty Shoes continues to trade below all major moving averages, signalling a cautious market stance towards the stock. The company’s valuation metrics suggest it is priced at a discount relative to peers, but this has coincided with a period of earnings contraction and subdued returns.

Investors and market participants will likely continue to monitor Liberty Shoes’ financial disclosures and market performance closely as the stock remains at a critical low point in its 52-week trading range.

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