From producing some of the finest designs to increasing its levels of consumption in the same field, India's footwear industry is going well and onwards. Several factors, like the rise in daily income, globalization, and the will to catch up to the latest fashion trends, have led to an increase in footwear demand, ultimately helping footwear stocks do well.
Such a performance is one of the key reasons why investors have now shifted their attention to finding and investing in the footwear stocks in India. So, if you are planning to add some style to your portfolio, then the footwear stocks in India might just be the perfect fit!
A Brief Overview of the Indian Footwear Industry
The Indian Footwear Industry offers a unique blend: the craftsmanship here is traditional with an infusion of modern designs and techniques at the same time. India has been doing quite well in footwear manufacturing and consumption. It ranks second, only coming after China, in terms of footwear manufacturing and consumption. According to the Confederation of Indian Industry, the footwear industry contributes to around 2% of Indian GDP. Further, another report by the Council for Footwear, Leather, & Accessories showcases the industry’s potential to reach up to $80 billion, meaning 8 times the growth of its current size by 2030.
The footwear industry has several categories. Some of the examples are casuals, sandals, flip-flops, flats, shoes, boots, and much more. Each of these categories is sold domestically and globally via online modes, retail stores, e-commerce, and other measures.
The industry is also a livelihood source of around 3 million people. Not to undermine or forget, it is also one of the leading attracting sectors for entrepreneurs in the small and medium enterprises.
With several attractions, the footwear industry also struggles with a few challenges. This includes environmental designs, changes in style and trends, technical backwardness, and more. However, even after these challenges, the footwear stocks in India have been gaining quite an attention because of their huge potential.
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Why Invest in Footwear Stocks?
As mentioned, the footwear industry has certain challenges. But despite the same, it has a huge growth potential. However, is that enough of a reason to invest in footwear stocks? Well, here are some of the benefits you may be able to enjoy by investing in footwear stocks in India.
Portfolio diversification is one of the key strategies for investors to lower their risks. And investing in footwear stocks can help you with the same.
Footwear is more of a necessity for everyone. This necessity gives the footwear industry stability, making the footwear stocks do good, a possibility.
As mentioned in several studies, the industry has a huge growth potential that can help investors make good profits in the long run.
Overview of Top Footwear Stocks in India as per Analyst Ratings and Market Capitalisation
Here is the list of some of the country's top footwear shares based on analyst ratings and market capitalisation.
Established in 2008, Campus Activewear is one of the leading brands in the Indian footwear industry. The company is majorly involved in the production of athlete and sports footwear with a variety of options, including different styles, colours, and designs for different ages and genders. The company's net sales for the quarter of March 2023 were ₹348 crores.
Established in 1997, Metro Brands is quite a popular name when it comes to footwear. The company has a vast variety of products. Additionally, with more than 800 stores spread across more than 192 cities, the presence of the brand is also worth mentioning.
With a variety of products under its names like Metro, Mochi, Walkway, and so on, the company aims to be on the top of consumers' list.
Until September of the 2024 financial year, the company's net sales stood at ₹1775 crores.
Launched in 1931, Bata India has been one of the common and popular footwear names in every household. It would be safe to say that over the years, Bata India has gained immense loyalty and trust from its customers. It has a diverse range of products, including sandals, heels, shoes, and much more, for individuals of all ages.
Bata tries tapping into young audiences with stylish yet affordable products.
Started in 1984, Relaxo Footwear is also one of the popular footwear names. The brand enjoys good market popularity under three popular names, Sparx, Bahamas and Flite.
With a variety of footwear products, the company distributes its products via e-commerce as well as retail stores.
Founded in 1979, Mirza International is one of the leading names in the footwear market and is involved in leather manufacturing and exporting. With a presence in over 28 countries, the company enjoys global audiences. Currently, the brand makes and distributes products for domestic and global markets. For Quarter 4 of the financial year 2024, the company reported a net sales of ₹152 crores.
Here is a quick list of footwear stocks in India:
Additional Read: What is Demat Account: Importance, Features and Types
Key Factors to Consider When Investing in Footwear Stocks
Until here, you already have some basic information about the top footwear stocks in India. However, before you start investing in any of the footwear stocks, make sure to consider a few factors. This includes:
The first thing to consider before investing in your top footwear stocks in India is to understand their financial performance. Consider looking into the company's basic information, such as its revenue, profit margins, future potential, and more. Consider checking the company's balance sheet.
Another important factor to consider is the market trends. Market trends and styles have a direct impact on consumer behaviour and demands. So, before you invest in any of the top footwear shares, make sure to understand the market sentiment.
The reputation of a brand plays a crucial role in determining its growth. Depending on the brand's reputation and experience, consumers are willing to pay more for renowned products. Thus, before you invest in any of the leading footwear stocks in India, make sure to check their reviews, and customer experiences.
Before you make an investment decision, it is equally important to check the brand's accessibility. See how the brand operates and what are its customer touchpoints. Inder its distribution sources like retail, online, and more can tell a lot if they have a good presence and if they are worth investing in.
To ensure you invest in one of the best footwear stocks in India, make sure to understand its manufacturing mechanism and supply chain efficiency. Look into factors like production cost, efficiency, geographical distribution, and so on.
Should You Invest in Footwear Stocks?
The footwear stocks depend a lot on consumer behaviour, urbanization patterns, market trends, and several other factors. Sometimes, these factors help the footwear stocks do well, while at times, there are also challenges.
Thus, before you start investing in the top footwear stocks in India, make sure to understand a few things. Read about market demands and trends. Also, understand the brand's reputation, manufacturing, and strength. Don't forget to check their competitive benefit if any.
Conclusion
All in all, the performance of footwear stocks has been more or less consistent. Thanks to factors like its resilient supply chain, quality manufacturing, consumer demand, and more. Footwear stocks are also seen as shares with huge potential.
However, before you invest in any footwear stocks, make sure to see if the same matches your financial planning and goals. In addition to that, don't forget to assess other factors like your risk-taking abilities, returns on these investments, the company's financial health, and so on. Read all these factors and make an informed decision accordingly.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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