Shares of Liberty Shoes have doubled investor wealth in a month, shrugging off volatility in the stock market. Liberty Shoes shares, which closed at Rs 175.55 on September 9, 2022, hit a record high of Rs 402.2 in today’s session, translating into gains of 129.10 per cent during the period. In comparison, Sensex has lost 4.27 per cent or 2,555 points during the period.
An investment of Rs 1 lakh in the stock 30 days ago would have grown to Rs 2.29 lakh today. The stock closed at Rs 365.65 in the previous session. It gained 10 per cent intraday to Rs 402.2 in early trade today. The stock opened 5.31 per cent higher at Rs 385.05 today. Liberty Shoes shares have gained 151 per cent this year and risen 15.55 per cent in a week.
A total of 0.57 lakh shares of the firm changed hands, amounting to a turnover of Rs 2.22 crore on BSE. The market cap of the company rose to Rs 661.32 crore on BSE. Liberty Shoes stock is is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
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Shares of Liberty Shoes have outperformed their peers during the period.
While Bata India has lost 5.72 per cent, Relaxo Footwear has lost 2.22 per cent in a month. Shares of another footwear major Metro Brands have climbed 8.42 per cent and stock of Campus Shoes has risen 12.53 per cent in a month.
In Q1 of the current fiscal, 29,857 public shareholders held 40.62 per cent stake or 69.21 lakh shares in the firm. 23 promoters held 59.38 per cent stake or 1.01 crore shares in the June quarter. 28,884 public shareholders held 45 lakh shares of the firm, amounting to a stake of 26.41 per cent with an individual share capital of up to Rs 2 lakh. Eight public shareholders held 7.85 lakh shares of the firm, amounting to a stake of 4.61 per cent with an individual share capital of over Rs 2 lakh.
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Financials
The firm reported a 278 per cent year-on-year (YoY) rise in consolidated net profit at Rs 5.47 crore against a loss of Rs 3.06 crore in the corresponding quarter of last year. On a sequential basis, profit zoomed 1,202 per cent from Rs 0.42 crore at the end of March 2022 quarter.
Sales rose 65.12 per cent to Rs 161.22 crore in Q1 against Rs 97.64 crore in the June quarter of previous fiscal. On a sequential basis, sales climbed 27.38 per cent from Rs 126.57 crore in the March quarter.
Here’s a look at what analysts said about the outlook of the Liberty Shoes stock.
Abhijeet from Tips2trade feels the stock is very overvalued and overbought right now.
“Despite a recent slump in majority of the stocks due to a globally inflationary environment, some stocks have not been impacted at all, one of them being Liberty Shoes. However, fundamentally and technically, the stock is very overvalued and overbought right now. Investors are advised to book profits at current levels. Re-entry into the stock can be initiated only near Rs 250- Rs 272 levels,” he said.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart is bullish on the Liberty Shoes counter and sees a 19 per cent upside.
“The counter has witnessed a breakout of bullish flag formation on the daily chart. The overall structure is very lucrative, as the stock is trading above its important moving averages. On the upside, Rs 390 is the immediate resistance, above which, the stock can rise to Rs 434 in the near term. On the downside, if it breaks Rs 340, Rs 327 will be the next critical level,”said Gour.
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking said, “The footwear sector has been in limelight as it has shown resilience and outperformed the broader market in the recent correction and subsequent pullback. Within this space, Liberty Shoes has been an outperformer maintaining higher peak and higher trough in all time frame. We remain constructive on the stock as recently it has generated a breakout above the 17-year-old resistance level and registered fresh all-time high with strong volume of more than twice its 50 days average volume signalling resumption of up move and thus offers fresh entry opportunity. However, on the oscillators front the daily/weekly 14 periods RSI is in strong up trend with overbought price reading. Hence, it can be expected that price might consolidated for a brief period before resuming its uptrend. It would be wiser to buy on decline for an upside target of Rs 433 (projected 150% retracement) followed by Rs 465.”