Best Footwear Stocks In India

The Indian footwear industry has witnessed significant growth in recent years powered by growing household income, rising consumer spending, and changing fashion trends. Investors seeking to capitalise on the changing market dynamics may find exciting investment opportunities in Indian footwear companies. This article delves into the Indian market and examines the top footwear stocks in India that show potential for long-term growth and profitability. 

From large, established brands to emerging footwear companies, we will explore the potential players in the domain and examine the factors that make them stand out from the rest. But before we do a deep dive, let’s consider the current market condition and prospects of the Indian footwear industry.

5 Best Footwear Stocks in India 2023

The Indian footwear sector is highly fragmented, with many unorganised players. Yet, some Indian footwear stocks have earned the favour of investors. Here are the best footwear stocks to invest in 2023.

Note: The list of the best footwear stocks here is dated as of July 28, 2023.  

Mirza International Ltd

Mirza International is involved in manufacturing, marketing, and exporting leather items, shoes, apparel, and allied products. It operates through three segments: tannery divisions, shoe divisions, and apparel and accessory divisions. Moreover, the company is almost debt-free.

Key financial highlights of the company 

• 5-year ROE: 8%
• Dividend Yield: 0.00%
• Net Profit in FY 2023: ₹26 crore

Relaxo Footwears Ltd

Relaxo is the largest footwear manufacturer in India in the non-leather category. The company produces rubber/EVA slippers, canvas shoes, sports shoes, sandals, school shoes, and other types of non-leather footwear. In terms of financial stability, the company is almost debt-free and maintains a healthy track record of dividend payments.

Key financial highlights of the company

• 5-year ROE: 15%
• Dividend Yield: 0.28%
• Net Profit in FY 2023: ₹154 crore

Bata India Ltd

Bata India is one of the top footwear stocks in 2023 that you can explore. Bata is one of India’s oldest and most reputed footwear brands. It is engaged in the manufacturing and trading of footwear and accessory products through a retail and wholesale network. It is one of the top dividend-paying stocks and has maintained a healthy dividend payout of 225%.

Key financial highlights of the company

• 5-year ROE: 12%
• Dividend Yield: 0.81%
• Net Profit in FY 2023: ₹323 crore

Superhouse Ltd 

Superhouse manufactures and exports leather, leather goods, textile goods, etc. The company has 22 manufacturing capacities located in various cities in India, with subsidiaries in the USA, the UK, Germany, France, Spain, and the UAE. It offers a wide range of products in men’s and women’s footwear, children’s footwear, rubber vulcanised boots, industrial workwear, belts, wallets, etc.

Key financial highlights of the company

• 5-year ROE: 8%
• Dividend Yield: 0.46%
• Net Profit in FY 2023: ₹30 crore

Liberty Shoes Ltd  

The Indian-based company is a manufacturer of footwear, accessories, and lifestyle products, which it markets through wholesale and retail channels. It owns several leading brands: Healers, Leap7x, Coolers, Footfun, Force20, etc.

Key financial highlights of the company

• 5-year ROE: 3%
• Dividend Yield: 0.00%
• Net Profit in FY 2023: ₹26 crore

Examining the Prospects of the Indian Footwear Industry

• India is only behind China, which is the world’s largest footwear-producing country. The Indian sector is witnessing a significant boost in leather and non-leather segments due to growth in consumer demand, changing lifestyles, economic growth, and a heightened focus on health.

• The increasing disposable income of the expanding middle-class segment is allowing India to move up the value chain and creating demand for shoes in different price and performance segments. 

• In 2022, the global footwear industry forecast predicts the market to grow at 12.83% year-on-year by 2028. And, between 2023 and 2028, the Indian market is expected to grow at a 4.84% CAGR. 

• In 2023, the total revenue generated by the Indian footwear market was US$24.86 billion. The market is expected to grow by 0.4% in volume by 2024. 
• The non-leather segment has witnessed significant growth, driven by a robust domestic market. It is expected to cross the US$6 billion mark by 2024 and grow 8 times by 2030.

Final Words

The Indian footwear companies are following in the footsteps of the global players to become key players in the domain. If you are interested in investing in the top footwear stocks in India, open a Demat Account with Angel One, one of India’s largest fintech companies.

Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.