Best Footwear Stocks in India for May 2025: Lehar Footwear, Khadim India and More Based on 5Y CAGR

The footwear industry in India stands on the cusp of a significant transformation, with projections indicating a market expansion to US$80 billion by 2030—an eightfold increase from its current size. This rapid growth presents a substantial opportunity to generate over 3 million jobs while unlocking entrepreneurial potential across the small and medium enterprise (SME) ecosystem.

In a strategic move, the Union Budget 2025–26 has introduced the Focus Product Scheme aimed at elevating productivity, quality, and global competitiveness in the footwear segment. This comprehensive initiative will foster innovation in design, enhance domestic component production, and strengthen machinery capabilities for both leather and non-leather footwear. In this blog, we will explore the best footwear stocks in India for May 2025, based on 5Y CAGR.

Top Footwear Stocks for May 2025 Based on 5Y CAGR

Overview of Best Footwear Stocks Based on 5Y CAGR

1. Liberty Shoes Ltd

Liberty Shoes is engaged in the manufacturing and trading of footwear, accessories and lifestyle products through its retail, ecommerce and wholesale network. The company reported strong performance across all sales segments in Q4 and FY25, showing marked improvement over the same period in FY 2023–24. This growth underscores the success of its product innovation strategy, expansion in both retail and digital channels, and continued focus on operational efficiency.

Key Metrics:

• ROE: 7.21%
• ROCE: 9.45%

2. Lehar Footwears Ltd

Lehar Footwears Ltd is a mass -footwear manufacturer and brand distribution company. The company has widened its reach through factory outlets, large-format stores like Dmart, Firstcry, etc and is exploring new export markets.

Key Metrics:

• ROE: 6.88%
• ROCE: 9.15%

3. Khadim India Ltd

Founded in 1981, Khadim India Ltd. is engaged in the manufacturing / retail business of footwear and accessories. The company is focused on entering into new markets through COCOs and further bolstering its presence in such markets through franchisees.

Key Metrics:

• ROE: 2.85%
• ROCE: 7.80%

Factors to Consider Before Investing in Footwear Stocks in India 

• Market Demand & Growth Potential: Evaluate the sector’s long-term growth outlook. Rising income levels, urbanisation, and a growing fashion-conscious youth population support strong demand. The projected market size of US$80 billion by 2030 indicates a high-growth sector.
• Company Fundamentals: Analyse financial performance metrics like revenue growth, profit margins, debt levels, and return ratios. Strong balance sheets and consistent earnings indicate stability.
• Brand Strength & Market Share: Established brands with high consumer loyalty (e.g., Bata, Relaxo, Metro) tend to outperform in competitive markets. Consider their positioning in both urban and rural areas.
• Diversification Across Segments: Companies with offerings across multiple price points (premium, mid-range, mass market) and product categories (sportswear, formal, casual, ethnic, kids) are more resilient to market shifts.

Also Read: Best Defence Stocks in May 2025 5Y CAGR Basis: Mazagon Dock, HAL, & More

Conclusion

Investing in footwear stocks in India offers promising opportunities, driven by strong domestic demand, export potential, and favourable government support. However, success in this sector depends on selecting companies with solid financials, brand strength, operational efficiency, and forward-looking strategies like digital adoption and sustainable practices.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.