Recent Price Momentum and Market Outperformance
Lehar Footwears has demonstrated significant upward momentum in recent trading sessions, with the stock gaining 7.18% over the past three days. Today, it outperformed its sector by 3.94%, reaching an intraday high of ₹250, a 6.29% increase from the previous close. This positive price action is supported by rising investor participation, as evidenced by a 45.08% increase in delivery volume on 12 Jan compared to the five-day average, signalling heightened market interest and confidence in the stock’s prospects.
Technically, the stock is trading above its 5-day, 20-day, and 50-day moving averages, indicating short to medium-term strength, although it remains below the 100-day and 200-day averages, suggesting some longer-term resistance levels yet to be overcome. Liquidity remains adequate, facilitating sizeable trades without significant price disruption.
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Strong Financial Performance Underpinning the Rally
The recent price appreciation is firmly grounded in Lehar Footwears’ robust financial results. The company reported outstanding quarterly numbers for the period ending September 2025, with net sales surging to ₹140.52 crores, marking a 57.8% increase compared to the previous four-quarter average. Operating profit has also shown remarkable growth, expanding by 90.60% annually, while net profit rose modestly by 0.28%. This consistent profitability is further highlighted by the company’s operating profit to interest ratio reaching a high of 10.33 times, underscoring efficient cost management and strong earnings before interest.
Profit before tax excluding other income stood at ₹10.00 crores, the highest recorded in recent quarters, signalling healthy core business performance. The company has maintained positive results for three consecutive quarters, reinforcing investor confidence in its operational resilience and growth trajectory.
Valuation and Long-Term Growth Prospects
Lehar Footwears’ valuation metrics add to its appeal. The return on capital employed (ROCE) is a robust 19.9%, reflecting efficient utilisation of capital to generate profits. The enterprise value to capital employed ratio stands at a modest 2.7, indicating the stock is trading at a discount relative to its peers’ historical valuations. This attractive valuation is complemented by a PEG ratio of 0.1, suggesting the stock is undervalued relative to its earnings growth potential.
Over the past five years, the stock has delivered an extraordinary return of 926.37%, vastly outperforming the Sensex’s 68.97% gain over the same period. Even over three years, the stock’s 165.56% return dwarfs the benchmark’s 38.78%. While the one-year return is more subdued at 0.43%, this contrasts with a substantial 269.2% increase in profits, indicating that earnings growth has outpaced price appreciation, potentially signalling further upside.
Investor Confidence and Shareholding Structure
The majority shareholding by promoters provides stability and aligns management’s interests with those of shareholders. This ownership structure often reassures investors about the company’s governance and strategic direction, contributing to the positive sentiment reflected in recent price gains.
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Conclusion: Why Lehar Footwears Is Rising
In summary, Lehar Footwears Ltd’s recent price rise is supported by a combination of strong quarterly financial results, sustained long-term growth, and attractive valuation metrics. The company’s ability to consistently grow net sales and operating profit, alongside improving profitability ratios, has bolstered investor confidence. This is reflected in the stock’s outperformance relative to the Sensex and its sector, as well as increased trading volumes and positive technical indicators.
While the stock’s one-year return remains modest, the substantial profit growth and favourable valuation ratios suggest that the market is beginning to recognise the company’s underlying strength. The promoter-backed shareholding structure further enhances stability, making Lehar Footwears an appealing proposition for investors seeking exposure to a fundamentally sound footwear manufacturer with a proven track record of growth.
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