Disclaimer : We don’t directly give advice to buy or sell shares. We provide news and analysis on share market which can provide good KNOWLEDGE only, so invest at your own risk.
If you are new to the Share Market, you can learn about Share Market basics or important Vocabulary here.
Apart from that if you want to learn about more Investment methods other than stock market then you can find it here.
In this share market blog analysis you are going to get info on Leather companies of India which are listed on NSE or BSE. Read it full for all information.
Stocks Info on Leather Company Stocks of India :
| Company Name | Stock Price (₹) | Market Cap (₹ Cr) | Net Profit (₹ Cr) | Index Listed |
|---|---|---|---|---|
| Bata India | ~1,350 | ~16,500 | ~250 (Q4 2023) | Nifty 500, BSE 100 |
| Relaxo Footwears | ~850 | ~10,200 | ~100 (Q4 2023) | Nifty 500, BSE 200 |
| Khadim India | ~250 | ~700 | ~15 (Q4 2023) | BSE SmallCap |
| Liberty Shoes | ~300 | ~350 | ~10 (Q4 2023) | BSE SmallCap |
| Mirza International | ~120 | ~600 | ~20 (Q4 2023) | BSE SmallCap |
| Superhouse Ltd | ~200 | ~250 | ~5 (Q4 2023) | BSE SmallCap |
| Page Industries | ~36,000 | ~39,800 | ~120 (Q4 2023) | Nifty 500 (Indirect exposure to leather products) |
Key Observations:
- Bata India and Relaxo Footwears are the largest players by market cap.
- Page Industries (owns Jockey) is included due to its leather-related products, though it’s primarily a textile company.
- Most leather/footwear companies are listed in BSE SmallCap, except Bata and Relaxo, which are in broader indices.
Financial Analysis & Fundamental Analysis of Indian Leather/Footwear Companies
| Company | Debt/Equity | P/E | P/B | ROE (%) | ROA (%) | Div Yield (%) | EPS (₹) |
|---|---|---|---|---|---|---|---|
| Bata India | 0.05 | ~50 | ~6.5 | ~13% | ~10% | 1.2% | ~25 |
| Relaxo Footwears | 0.10 | ~80 | ~12 | ~15% | ~12% | 0.4% | ~10 |
| Khadim India | 0.60 | ~35 | ~2.0 | ~6% | ~4% | 0% | ~7 |
| Liberty Shoes | 0.30 | ~25 | ~1.2 | ~5% | ~3% | 0% | ~12 |
| Mirza International | 0.40 | ~15 | ~0.8 | ~8% | ~5% | 0% | ~8 |
| Superhouse Ltd | 0.70 | ~20 | ~0.7 | ~4% | ~2% | 0% | ~10 |
| Page Industries | 0.00 (Debt-free) | ~90 | ~25 | ~28% | ~20% | 0.3% | ~400 |
Simplified Analysis
1. Valuation (P/E & P/B)
- Expensive Stocks:
- Relaxo (P/E 80, P/B 12) and Bata (P/E 50, P/B 6.5) trade at premiums due to strong brands and retail dominance.
- Page Industries (P/E 90, P/B 25) is extremely expensive but justified by its high ROE (28%) and debt-free status.
- Cheap Stocks:
- Mirza (P/E 15, P/B 0.8) and Superhouse (P/E 20, P/B 0.7) appear undervalued but have weaker profitability.
2. Profitability (ROE & ROA)
- Best Performers:
- Page Industries (ROE 28%, ROA 20%) – Exceptionally efficient.
- Bata (ROE 13%) & Relaxo (ROE 15%) – Stable but lower than Page.
- Weak Performers:
- Liberty (ROE 5%), Superhouse (ROE 4%) – Struggling with low margins.
3. Financial Health (Debt/Equity)
- Debt-Free: Page Industries (rare in this sector).
- Low Debt: Bata (0.05), Relaxo (0.10) – Strong balance sheets.
- High Debt: Superhouse (0.70), Khadim (0.60) – Riskier bets.
4. Dividends
- Only Bata (1.2%) and Relaxo (0.4%) pay dividends – typical for growth-focused footwear companies.
Key Takeaways
✅ Quality Picks: Bata & Relaxo – Premium valuations but safest due to brands and low debt.
✅ High-Growth Bet: Page Industries – Expensive but outstanding fundamentals.
⚠️ Turnaround Plays: Mirza, Khadim – Cheap but need operational improvements.
❌ Avoid (For Now): Liberty, Superhouse – Low profitability, high debt.
Piotroski F-Score Analysis of Leather / Footwear Companies of India :
| Company | Piotroski Score | Analysis |
|---|---|---|
| Bata India | 7 | Strong profitability (positive net income, improving ROA), low debt, and positive operating cash flow. Weakness: Declining asset turnover. |
| Relaxo Footwears | 6 | Good profitability and cash flow, but slightly weaker liquidity (current ratio < 2) and lower gross margins than Bata. |
| Khadim India | 4 | Mixed: Positive net income and cash flow, but high debt/equity and declining ROA. |
| Liberty Shoes | 3 | Weak: Low profitability, stagnant revenue, and high leverage. |
| Mirza International | 5 | Moderate: Improving ROA and cash flow, but high debt and low liquidity. |
| Superhouse Ltd | 2 | Poor: Negative cash flow, declining margins, and high leverage. |
| Page Industries | 8 | Exceptional: Debt-free, high ROA, strong cash flow, and improving margins. |
Breakdown of Piotroski Criteria
Each company is scored on:
- Profitability
- Positive net income? (1 point)
- Positive ROA? (1 point)
- Operating cash flow > Net income? (1 point)
- Higher ROA than prior year? (1 point)
- Leverage & Liquidity
- Lower debt than last year? (1 point)
- Higher current ratio than last year? (1 point)
- No new dilution of shares? (1 point)
- Operating Efficiency
- Higher gross margin than last year? (1 point)
- Higher asset turnover than last year? (1 point)
Simplified Analysis
🏆 Best Performers (Score 7-9)
- Page Industries (8/9) → Strong buy signal (debt-free, high cash flow, improving margins).
- Bata India (7/9) → Solid pick (low debt, good cash flow, but asset efficiency declining).
⚠️ Moderate (Score 4-6)
- Relaxo (6/9) → Decent but not outstanding (weaker liquidity than Bata).
- Mirza (5/9) → Potential turnaround if debt reduces.
- Khadim (4/9) → Risky due to leverage.
❌ Weak (Score ≤3)
- Liberty (3/9), Superhouse (2/9) → Avoid (poor profitability, high debt, negative trends).
Final Takeaways
✅ Invest in: Page Industries, Bata India (high Piotroski scores = financially strong).
🔍 Monitor: Relaxo, Mirza (need improvement in leverage/efficiency).
🚫 Avoid: Liberty, Superhouse, Khadim (low scores = high risk).
Credit Rating & Financial Stability Analysis
| Company | Credit Rating (2024) | Outlook | Key Strengths | Key Risks |
|---|---|---|---|---|
| Bata India | CRISIL AA+/Stable | Stable | Strong brand, low debt, high cash flows | Dependence on discretionary spending |
| Relaxo Footwears | ICRA AA/Stable | Stable | Market share gains, healthy profitability | Rising competition, margin pressures |
| Khadim India | CARE BBB-/Negative | Negative | Pan-India retail presence | High debt, weak liquidity |
| Liberty Shoes | Unrated | – | Legacy brand | Low profitability, declining sales |
| Mirza International | CRISIL BBB/Stable | Stable | OEM exporter (global clients) | Working capital stress, forex risks |
| Superhouse Ltd | CARE B+/Negative | Negative | Diversified product base | High leverage, loss-making operations |
| Page Industries | CRISIL AAA/Stable | Stable | Debt-free, exceptional ROE, strong brand | Premium valuation risks |
Simplified Credit Risk Analysis
1. Highest-Rated (Low Risk)
- Page Industries (AAA) → Gold standard (zero debt, strong cash reserves).
- Bata India (AA+) → Very safe (low leverage, dominant market position).
2. Moderate Risk (Investment Grade)
- Relaxo (AA) → Stable but faces competition.
- Mirza (BBB) → Export-driven, but working capital concerns.
3. High Risk (Speculative Grade)
- Khadim (BBB-) → Near junk status due to debt.
- Superhouse (B+) → Highly risky (negative outlook, losses).
- Liberty (Unrated) → Weak fundamentals, avoid.
Key Takeaways
✅ Safest Bets: Page Industries, Bata India (high ratings, stable cash flows).
⚠️ Caution Needed: Relaxo, Mirza (moderate ratings, sector risks).
🚫 Avoid: Khadim, Superhouse, Liberty (poor ratings, financial stress).
Conclusion :
Future Prospects, Financial Strengths, Bullish & Bearish Factors for Leather / Footwear Companies :
| Company | Future Prospects | Financial Strengths | Bullish Factors | Bearish Factors |
|---|---|---|---|---|
| Bata India | Strong brand, omnichannel expansion, premiumization trend | Low debt (D/E 0.05), high cash flows, dividend-paying | Market leader, pricing power, rural growth potential | High valuation (P/E 50), demand sensitivity |
| Relaxo Footwears | Affordable segment growth, distribution expansion | Strong ROE (15%), improving margins | Value brand, rising footwear demand | Rising competition, high P/E (80) |
| Khadim India | Focus on branded retail, cost optimization | Pan-India presence | Turnaround potential if execution improves | High debt (D/E 0.6), weak profitability |
| Liberty Shoes | Legacy brand, export opportunities | Low P/E (25) | Cheap valuation | Declining sales, low ROE (5%) |
| Mirza International | Export growth (OEM for global brands) | Improving ROA (5%) | Undervalued (P/E 15) | Working capital issues, forex risks |
| Superhouse Ltd | Leather exports, cost-cutting efforts | Diversified client base | Low P/B (0.7) | High debt (D/E 0.7), losses |
| Page Industries | Premium innerwear & athleisure growth | Debt-free, ROE 28%, high margins | Monopoly in Jockey, strong brand | Extremely high valuation (P/E 90) |
Investment Recommendations
Long-Term Investments (3-5+ Years)
- Page Industries
- Why? Debt-free, dominant brand (Jockey), consistent high ROE (28%).
- Risks: Overvaluation (P/E 90), premium segment slowdown.
- Bata India
- Why? Market leader, strong balance sheet, omnichannel growth.
- Risks: High P/E (50), competition from Relaxo & international brands.
- Relaxo Footwears
- Why? Affordable segment growth, strong distribution.
- Risks: Margin pressure, valuation (P/E 80).
Short-Term/Speculative Bets (1-2 Years)
- Mirza International
- Why? Undervalued (P/E 15), export recovery potential.
- Risks: Working capital crunch, forex volatility.
- Khadim India
- Why? Turnaround potential if debt reduces.
- Risks: Weak profitability, high leverage.
🚫 Avoid (High Risk, Weak Fundamentals)
- Liberty Shoes – Declining sales, low ROE.
- Superhouse Ltd – Loss-making, high debt.
Final Verdict
- Best for Stability: Bata, Page Industries (strong brands, low debt).
- Growth Potential: Relaxo, Mirza (if execution improves).
- Avoid: Liberty, Superhouse (weak financials).
I hope you like this full stocks analysis of Leather / Footwear companies of India.
Happy Investing
Extra Reference :
More to Read :
Stocks : Developers & Operators Companies Stocks – Full Indian Stocks Analysis
Sports : Reasons Behind India Losing a Cricket WC Final in 2023