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Leather Sector Stock Analysis: Trends, Performance & Key Players in India

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. 

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 NameStock 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:

  1. Bata India and Relaxo Footwears are the largest players by market cap.
  2. Page Industries (owns Jockey) is included due to its leather-related products, though it’s primarily a textile company.
  3. 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

CompanyDebt/EquityP/EP/BROE (%)ROA (%)Div Yield (%)EPS (₹)
Bata India0.05~50~6.5~13%~10%1.2%~25
Relaxo Footwears0.10~80~12~15%~12%0.4%~10
Khadim India0.60~35~2.0~6%~4%0%~7
Liberty Shoes0.30~25~1.2~5%~3%0%~12
Mirza International0.40~15~0.8~8%~5%0%~8
Superhouse Ltd0.70~20~0.7~4%~2%0%~10
Page Industries0.00 (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 :

CompanyPiotroski ScoreAnalysis
Bata India7Strong profitability (positive net income, improving ROA), low debt, and positive operating cash flow. Weakness: Declining asset turnover.
Relaxo Footwears6Good profitability and cash flow, but slightly weaker liquidity (current ratio < 2) and lower gross margins than Bata.
Khadim India4Mixed: Positive net income and cash flow, but high debt/equity and declining ROA.
Liberty Shoes3Weak: Low profitability, stagnant revenue, and high leverage.
Mirza International5Moderate: Improving ROA and cash flow, but high debt and low liquidity.
Superhouse Ltd2Poor: Negative cash flow, declining margins, and high leverage.
Page Industries8Exceptional: Debt-free, high ROA, strong cash flow, and improving margins.

Breakdown of Piotroski Criteria

Each company is scored on:

  1. Profitability
    • Positive net income? (1 point)
    • Positive ROA? (1 point)
    • Operating cash flow > Net income? (1 point)
    • Higher ROA than prior year? (1 point)
  2. Leverage & Liquidity
    • Lower debt than last year? (1 point)
    • Higher current ratio than last year? (1 point)
    • No new dilution of shares? (1 point)
  3. 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

CompanyCredit Rating (2024)OutlookKey StrengthsKey Risks
Bata IndiaCRISIL AA+/StableStableStrong brand, low debt, high cash flowsDependence on discretionary spending
Relaxo FootwearsICRA AA/StableStableMarket share gains, healthy profitabilityRising competition, margin pressures
Khadim IndiaCARE BBB-/NegativeNegativePan-India retail presenceHigh debt, weak liquidity
Liberty ShoesUnratedLegacy brandLow profitability, declining sales
Mirza InternationalCRISIL BBB/StableStableOEM exporter (global clients)Working capital stress, forex risks
Superhouse LtdCARE B+/NegativeNegativeDiversified product baseHigh leverage, loss-making operations
Page IndustriesCRISIL AAA/StableStableDebt-free, exceptional ROE, strong brandPremium 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 :

CompanyFuture ProspectsFinancial StrengthsBullish FactorsBearish Factors
Bata IndiaStrong brand, omnichannel expansion, premiumization trendLow debt (D/E 0.05), high cash flows, dividend-payingMarket leader, pricing power, rural growth potentialHigh valuation (P/E 50), demand sensitivity
Relaxo FootwearsAffordable segment growth, distribution expansionStrong ROE (15%), improving marginsValue brand, rising footwear demandRising competition, high P/E (80)
Khadim IndiaFocus on branded retail, cost optimizationPan-India presenceTurnaround potential if execution improvesHigh debt (D/E 0.6), weak profitability
Liberty ShoesLegacy brand, export opportunitiesLow P/E (25)Cheap valuationDeclining sales, low ROE (5%)
Mirza InternationalExport growth (OEM for global brands)Improving ROA (5%)Undervalued (P/E 15)Working capital issues, forex risks
Superhouse LtdLeather exports, cost-cutting effortsDiversified client baseLow P/B (0.7)High debt (D/E 0.7), losses
Page IndustriesPremium innerwear & athleisure growthDebt-free, ROE 28%, high marginsMonopoly in Jockey, strong brandExtremely high valuation (P/E 90)

Investment Recommendations

Long-Term Investments (3-5+ Years)

  1. Page Industries
    • Why? Debt-free, dominant brand (Jockey), consistent high ROE (28%).
    • Risks: Overvaluation (P/E 90), premium segment slowdown.
  2. Bata India
    • Why? Market leader, strong balance sheet, omnichannel growth.
    • Risks: High P/E (50), competition from Relaxo & international brands.
  3. Relaxo Footwears
    • Why? Affordable segment growth, strong distribution.
    • Risks: Margin pressure, valuation (P/E 80).

Short-Term/Speculative Bets (1-2 Years)

  1. Mirza International
    • Why? Undervalued (P/E 15), export recovery potential.
    • Risks: Working capital crunch, forex volatility.
  2. Khadim India
    • Why? Turnaround potential if debt reduces.
    • Risks: Weak profitability, high leverage.

🚫 Avoid (High Risk, Weak Fundamentals)

  1. Liberty Shoes – Declining sales, low ROE.
  2. 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 :

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