Top Footwear Stocks in India as per Market Cap

The Indian footwear industry is witnessing rapid growth, driven by rising consumer demand, a shift towards non-leather products, and strong government support. With the market expected to reach $90 billion by 2030, investing in footwear stocks presents a compelling opportunity. The Union Budget 2024-25 has introduced policies to boost domestic manufacturing and exports, further strengthening the sector. In this blog, we explore why now is the right time to invest, the risks and rewards of the industry, and the impact of government policies. Herein, we’ll also provide an in-depth analysis of the top footwear stocks in India by market capitalisation and guide you on how to invest in them through a trading account. Whether you're a new investor or looking to diversify your portfolio, this guide offers valuable insights into the future of footwear stocks in India.

What are Footwear Stocks?

Footwear stocks refer to shares of companies engaged in the design, manufacture, and sale of footwear products, including shoes, sandals, and boots. Investing in these stocks allows individuals to participate in the financial performance of the footwear industry. To invest in footwear stocks in India, one must open a Demat account, which facilitates the electronic holding and trading of shares. Prominent footwear companies listed on Indian stock exchanges include Bata India, Relaxo Footwears, and Metro Brands. These companies offer a range of products catering to various consumer segments and have established significant market presence. Investors interested in this sector should analyse market trends, consumer preferences, and the financial health of these companies to make informed investment decisions.

Footwear Stocks Industry in India

The Indian footwear industry has witnessed substantial growth, driven by factors such as rising disposable incomes, urbanisation, and evolving fashion trends. The sector comprises a mix of well-established brands and emerging players, offering a diverse range of products from traditional footwear to modern athleisure designs. In recent times, the industry has seen activity in the primary market, with companies like Metro Brands launching their initial public offerings (IPOs) to raise capital and expand operations. Investors keen on upcoming IPOs in the footwear sector should monitor regulatory filings and market announcements to seize potential investment opportunities. The industry's growth trajectory suggests a promising outlook, but investors should conduct thorough due diligence, considering market dynamics and company-specific factors before investing.

What are the Features of Footwear Stocks in India?

Footwear stocks in India exhibit several characteristics that investors should consider:

• Market Sensitivity: The performance of footwear companies is closely tied to consumer spending patterns, making them sensitive to economic cycles and discretionary income levels.
• Product Diversification: Many companies offer a broad spectrum of products, from budget-friendly options to premium lines, catering to diverse consumer segments.
• Distribution Channels: A robust mix of retail outlets, online platforms, and exclusive brand stores enhances market reach and sales potential.
• Seasonal Demand: Sales can fluctuate based on seasons, festivals, and wedding periods, impacting quarterly performance.
• Margin Trading Facility (MTF) Eligibility: Some footwear stocks are available for trading under MTF, allowing investors to leverage their positions by borrowing funds to purchase shares. This feature can amplify gains but also increases risk, necessitating careful consideration and risk management.

Investors should evaluate these features, along with company fundamentals and market conditions, to make informed decisions in the footwear sector.

Top Footwear Stocks in India as per Market Capitalisation^*

^{*Note: CMP (₹): Current Market Price; Market Cap (₹ m): Market Capitalisation; P/E (x): Price-to-Earnings ratio, RoE (Latest, %): Return on Equity percentage; D/E (Curr FY, x): Debt-to-Equity ratio; Sales CAGR (3 yrs, %): Compound annual growth rate of sales over three years; Profit CAGR (3 yrs, %): Profit growth over three years; NM indicates not meaningful.}

The table highlights the top footwear stocks in India by market capitalisation as of February 2025. It provides a comprehensive overview of the leading companies in the footwear sector, covering key financial metrics such as the P/E ratio, return on equity (RoE), debt-to-equity (D/E) ratio, sales growth (CAGR) over three years, and profit growth (CAGR) over three years. These indicators offer insights into each company's financial performance, market position, and growth potential.

• Metro Brands: Market cap of ₹30,993.92 crore, P/E ratio of 75.41, RoE of 24.2%, and a debt-free balance sheet. Sales have grown at a CAGR of 43% over three years, while profit growth stands at 87%.
• Bata India: Market cap of ₹16,966.28 crore, P/E ratio of 47.70, RoE of 17.2%, and a debt-free balance sheet. Sales CAGR over three years is 26.7%, with a profit CAGR of 77%.
• Relaxo Footwears: Market cap of ₹11,686.42 crore, P/E ratio of 66.59, RoE of 10.0%, and a debt-free structure. Sales CAGR over three years is 7.3%, while profit growth has declined by 11%.
• Campus Activewear: Market cap of ₹8,203.00 crore, P/E ratio of 68.99, RoE of 14.9%, and a D/E ratio of 0.4. Sales CAGR over three years is 27%, with a profit CAGR of 49%.
• Liberty Shoes: Market cap of ₹638.06 crore, P/E ratio of 35.57, RoE of 5.3%, and a D/E ratio of 0.3. Sales CAGR over three years is 11.6%, with an impressive profit growth of 254.2%.

This data, sourced from Equitymaster, Screener, and Moneycontrol, provides valuable insights into the financial strength and market standing of key players in India's footwear industry.

Overview of Footwear Stocks in India

The Footwear Industry in India consists of 15 companies with an average market capitalisation of ₹5,312 crore. Over the past quarter, the industry has declined by -8.09%, underperforming the Nifty50, which saw a decline of -2.56% in the same period. The sector holds an Industry Score of 46.4/100, indicating moderate strength within the broader market.

The industry has a Price-to-Earnings (P/E) ratio of 64.35 and a Price-to-Book (P/B) ratio of 12.10, reflecting premium valuations. Key profitability metrics include a Return on Equity (RoE) of 18.31% and a Return on Capital Employed (RoCE) of 18.65%, demonstrating stable efficiency in capital utilisation. However, the dividend yield stands at a modest 0.56%, suggesting that most companies reinvest earnings for growth rather than distributing profits to shareholders.

Revenue growth has been moderate, with an annual YoY increase of 4.05%, while quarterly YoY revenue growth is recorded at 4.28%. Net profit growth annually has remained flat at 0.25%, whereas quarterly net profit growth YoY is 5.92%, showing signs of recovery.

The Advance/Decline ratio stands at 0:15, indicating that none of the footwear stocks have advanced recently, and the market sentiment for the sector remains bearish. The market breadth data further supports this, showing a monthly decline of -6.94%, a weekly drop of -8.46%, and a yearly fall of -5.68%.

This data is sourced from Trendlyne.

Overview of Metro Brands Limited

Core Business: Metro Brands Limited is a prominent Indian footwear and accessories specialty retailer, offering a diverse range of products for men, women, and children, suitable for both casual and formal occasions.

Store Network (as of December 2024):

• Total Stores: 895 across 203 cities in 31 states and union territories.
• Store Formats: Operates five distinct formats.
• Recent Expansion: Added 87 new stores in FY24.

Brand Portfolio:

• In-House Brands: Metro, Mochi, Walkway, Da Vinchi, and J. Fontini.
• Third-Party Brands: Retail partnerships with Crocs, Skechers, Clarks, Florsheim, FitFlop, Puma, and Adidas.
• Revenue Contribution: Sales from in-house and third-party brands constituted 72% of revenue from Multi-Brand Outlets (MBOs) in the first nine months of FY24.

Geographical Distribution of Stores:

• North: 24%
• South: 33%
• East: 13%
• West: 30%

Sales Channels:

• In-Store: 89%
• Online: 8%
• Omnichannel: 2%
• Others: 1%

Strategic Partnerships and Expansions:

• Foot Locker: Entered a strategic partnership in FY24, granting exclusive rights to own and operate Foot Locker stores in India.
• Store Expansion Plans: Aims to open 200 additional stores (excluding Fila and Foot Locker) during FY24 and FY25.

Financial Performance (Q3 FY24-25):

• Net Sales: ₹703.09 crore, a 10.64% increase year-on-year.
• Profit Before Tax: ₹136.07 crore.
• Profit After Tax: ₹94.58 crore, indicating a decline, suggesting areas for improvement.

Market Response:

• Shares experienced a 7% surge on February 3, 2025, following Union Budget announcements that included incentives for the footwear industry and adjustments in income tax slabs benefiting the middle class.

Operational Highlights:

• Loyalty Program: Over 13 million members.
• Vendor Network: Collaborates with approximately 250 vendors.
• Product Sourcing: Operates without manufacturing facilities, relying entirely on outsourced production.

Regulatory Compliance:

• In anticipation of the BIS Quality Control Order (QCO) for footwear effective from January 1, 2024, the company increased inventory levels to mitigate potential supply chain disruptions, expecting elevated inventory until June 2024.

Subsidiary Operations:

• Cravatex Brands Limited (CBL): Incurred losses of ₹44 crore in the first nine months of FY24 due to store rationalisation. Plans are underway to liquidate excess inventory by March 2024 and re-launch the FILA brand through Metro and Mochi MBOs in FY25.

Demerger:

• In March 2024, the National Company Law Tribunal (NCLT) approved the demerger of CBL from Metro Brands Limited.

This comprehensive overview reflects Metro Brands Limited's strategic initiatives, financial health, and market positioning as of February 2025.

Metro Brands Financial Snapshot^*

^{*Note: CMP – Current Market Price; P/E – Price to Earnings Ratio; Mar Cap – Market Capitalisation; Div Yld – Dividend Yield; NP Qtr – Net Profit for the Quarter; Qtr Profit Var – Quarterly Profit Variation; Sales Qtr – Sales for the Quarter; Qtr Sales Var – Quarterly Sales Variation; ROCE – Return on Capital Employed.}

Overview of Bata India

• Core Business: Bata India is engaged in the manufacturing and trading of footwear and accessories through its retail and wholesale network.
• Parent Company: Bata Corporation, founded in 1894 in the Czech Republic, holds a 50% stake in Bata India. It is the world’s leading shoemaker by volume, with over 5,300 stores across 70+ countries and 21 production facilities in 18 countries.
• Market Leadership: Largest footwear retailer and leading manufacturer in India, with a retail network of 1,860+ stores across ~1,500 towns in FY24, growing from ~1,700 stores across ~890 towns in FY20. Total retail space covers 3.68 million sq. ft.
• Manufacturing Capacity: Operates four production units in Batanagar (Kolkata), Bataganj (Bihar), Peenya (near Bangalore), and Hosur (Tamil Nadu), with an annual production capacity of 21 million pairs.
• Brand Portfolio: Includes Bata, Power, Marie Claire, North Star, Naturaiser, Scholl, Bata Comfit, Weinbrenner, Hush Puppies, and others.
• Technical Collaboration: Entered a 10-year agreement with Global Footwear Services (GFS), Singapore, for R&D, marketing, brand development, and quality control, paying a fee of ₹50 crore (~1.5% of revenues) in FY24.
• Asset-Light Model: Expanding franchise stores over company-owned stores; as of FY24, operates 500+ franchise stores and 1,320+ company-owned stores, compared to ~170 franchises and ~1,390 company-owned stores in FY20. Renovated 180+ stores in FY24.
• Non-Retail Business: Includes Multi-Brand Outlets (MBOs), Key Accounts, B2B, and exports. Expanded MBO network to 1,500+ towns, with 700+ enterprises offering Bata products through its B2B division.
• E-commerce Growth: Operates one of India’s largest Omni-networks (home delivery), covering 1,700+ stores. Online sales contributed 1+ million pairs in FY24. E-commerce marketplace sales grew 41% YoY, while Bata.com grew 31% YoY.
• Diversification Initiatives:
  • Launched the first Power Exclusive Brand Outlet (EBO) in Noida; plans to open 10 more by Q3 FY25.
  • Introduced Power apparel, expanding from 70 stores to 100 by Q3 FY25.
  • Partnered with ABG Brands in 2023 to launch the premium brand Nine West, opening 40 stores in Q4 FY24 and planning 30 more by Q3 FY25.
  • Expanding Floatz Kiosk stores from 11 in FY24 to 30 by Q3 FY25.
  • Implemented Sneaker Studios in 698 stores.
• Premium Brand Focus: Emphasising premium brands like Hush Puppies, Power, North Star, and Comfit, which contribute 40% of total revenue as of FY24.

Bata India Financial Snapshot^*

^{*Note: CMP – Current Market Price; P/E – Price to Earnings Ratio; Mar Cap – Market Capitalisation; Div Yld – Dividend Yield; NP Qtr – Net Profit for the Quarter; Qtr Profit Var – Quarterly Profit Variation; Sales Qtr – Sales for the Quarter; Qtr Sales Var – Quarterly Sales Variation; ROCE – Return on Capital Employed.}

Overview of Relaxo Footwears Ltd

• Core Business: Relaxo Footwears Ltd is India's largest footwear manufacturer, producing non-leather footwear, including rubber/EVA slippers, canvas shoes, sports shoes, sandals, and school shoes. It is a market leader in the value segment.
• Key Brands: Relaxo, Sparx, Flite, and Bahamas.
• Market Position: Ranked among the top 300 most valuable companies in India.

Revenue Breakdown (FY24)

• Brand-Wise:
  • Sparx: 38%
  • Flite: 37%
  • Relaxo/Bahamas: 38%
• Channel-Wise:
  • General Trade: 76%
  • Modern Trade: 10%
  • Retail: 9%
  • Export: 5%

Geographic Reach

• Domestic Market Revenue Bifurcation:
  • North: 45%
  • East: 25%
  • West: 19%
  • South: 11%
• Exports: Ships to ~34 countries with one overseas office in Dubai. Achieved 3-Star Export House status in FY24.

Distribution Network

• 70,000+ retailers, ~650 distributors, and 405 exclusive brand outlets (EBOs).
• Products available on major e-commerce platforms like Amazon, Flipkart, and Meesho.

Manufacturing Capacity

• 9 manufacturing facilities located in Bahadurgarh (Haryana), Bhiwadi (Rajasthan), and Haridwar (Uttarakhand).
• Production capacity: ~10.5 lakh pairs/day (~30 crore pairs annually).
• Implemented Lean Manufacturing, fast-moving SKU production lines, and the Maynard Operation Sequence Technique (MOST).

Volume & Realisation

• Pairs Sold:
  • FY24: 19.5 crore pairs
  • FY23: 17.1 crore pairs
  • FY22: 17.5 crore pairs
• Average Realisation per Pair:
  • FY24: ₹148
  • FY23: ₹161
  • FY22: ₹150
• Q1 FY25: Sold 5 crore pairs at a realisation of ₹150.

Margins & Profitability Challenges

• Operates in a labour-intensive industry and faced margin pressure in Q1 FY25 due to a mandated rise in minimum wages.
• Chose not to pass on costs to consumers due to weak market conditions.
• Implementing cost optimisation initiatives to improve performance.
• FY23 margins were impacted by raw material inflation, which was absorbed by the company.
• FY24 margins improved due to lower raw material costs but were partly offset by higher fixed expenses.

Capital Expenditure (Capex)

• FY23: ₹174 crore
• FY24: ₹232 crore
• Land Acquisition: Acquired 30 acres in Rajasthan for ₹135 crore in Dec 2023 to set up future manufacturing facilities.
  • 87 registered trademarks, 12 copyrights, and 1,260 product designs.
  • Launched the 'Relaxo Parivaar' mobile application for retail outreach.
  • Opened its first consumer experience store in Delhi.
  • Revamped Distributor Management System to boost secondary sales.
  • Expanded e-commerce operations with the 'Brand as a Seller' model on major platforms.
  • Targets double-digit revenue growth with an EBITDA margin of 15-16%.
  • Plans to add 50-60 new exclusive brand outlets (EBOs).
  • Core Business: Campus Activewear Limited is one of India’s largest sports and athleisure footwear brands, manufacturing and distributing a wide range of footwear, including running shoes, walking shoes, casual shoes, floaters, slippers, flip-flops, and sandals.
  • Market Position: Holds a 17% market share in the scaled sports and athleisure footwear market and is the No.1 Sports & Athleisure (S&A) footwear brand in India.
  • Product Portfolio:
    • Offers 2,400+ active styles across men’s, women’s, and children’s footwear.
    • 300+ new designs launched in FY24.
  • Key Data Points (FY24):
    • 22.2 million pairs sold.
    • 7+ million pairs sold online.
    • 3,000+ active shoe styles in circulation.
  • Pan-India Presence:
    • 24,000+ retail touchpoints across 650+ cities in 28 states.
    • Supported by 300+ distributors.
  • Omnichannel Distribution (FY24):
    • Trade Distribution: 53.5%
    • Direct-to-Consumer (D2C) Online: 35.9%
    • Direct-to-Consumer (D2C) Offline: 10.6%
  • Brand Outlets & Large Format Stores:
    • 270+ exclusive brand outlets.
    • Available in 1,500+ large format store counters.
  • Design & Innovation:
    • 40-member in-house design team with global design consultants.
    • Quick turnaround of 120–180 days from concept to market.
  • Manufacturing & Production Capacity:
    • 5 manufacturing facilities across India.
    • Annual assembly capacity of 35.7 million pairs.
    • In-house production:
      • 4.8 million footwear uppers.
      • 10.8 million footwear soles.
    • Third-party capacity:
      • 24 million footwear uppers.
      • 18 million footwear soles.
  • Marketing & Brand Ambassadors:
    • 8.6% of revenue spent on advertising & marketing.
    • Brand ambassadors: Vikrant Massey, Vicky Kaushal, and Sonam Bajwa.
  • Pricing & Revenue Mix:
    • Average selling price: ₹652 per pair in FY24 (vs ₹631 in FY23).
    • Shift in product mix towards premium categories (₹1,000–₹3,000 range).
    • Revenue mix based on price segments:
      • ₹1,050+: 26.9% (down from 47.5% in FY19).
      • ₹1,050–₹1,499: 26.7% (up from 21.1% in FY19).
      • Below ₹1,500: 47.3% (up from 31.3% in FY19).
  • Core Business: Liberty Shoes Limited (LSL) is an Indian company engaged in the manufacturing and trading of footwear, accessories, and lifestyle products.
  • Established: 1954 as "Pal Boot House" in Karnal, Haryana, by founders Dharam Pal Gupta, Purshotam Das Gupta, and Rajkumar Bansal.
  • Brand Evolution: The brand "Liberty" was introduced in 1964, reflecting the founders' commitment to independence and quality.
  • Footwear: Offers a diverse range including fashion footwear, dress shoes, sports shoes, slip-ons, ballerinas, casuals, school shoes, and safety/industrial footwear.
  • Accessories: Provides shoe-care products, backpacks, belts, wallets, travel bags, and handbags.
  • Perfumes and Skincare: Launched a luxury line of perfumes and related skincare products.
  • Locations: Operates six manufacturing units across India, including facilities in Karnal, Gharaunda, Liberty Puram (Haryana), Paonta Sahib (Himachal Pradesh), and Roorkee (Uttarakhand).
  • Production Capacity: Collectively produces approximately 60,000 pairs of footwear daily.
  • Retail Presence: Maintains a network of 433 exclusive showrooms (both franchised and owned) as of June 30, 2023.
  • Distributors: Collaborates with 150 distributors across India.
  • E-commerce: Sells products through platforms like Amazon, Flipkart, Ajio, Myntra, Tata Cliq, Snapdeal, and Nykaa.
  • Net Sales: ₹160.10 crore, a 5.27% increase from ₹152.08 crore in December 2023.
  • Net Profit: ₹2.37 crore, a significant rise from ₹0.18 crore in December 2023.
  • EBITDA: ₹13.43 crore, up 23.66% from ₹10.86 crore in December 2023.
  • Leadership Changes: In November 2023, Executive Director Adesh Kr Gupta was removed following a National Company Law Tribunal (NCLT) decision.
  • Marketing Campaign: Launched the 'Mera Joota Hindustani' campaign in August 2024 to celebrate India's Independence Month.
  • Energy Conservation: In FY2023, invested ₹344.25 lakh in energy conservation equipment, including the installation of solar plants at manufacturing facilities in Libertypuram and Karnal.
  • BSE: Listed under the ticker symbol 526596.
  • NSE: Listed under the ticker symbol LIBERTSHOE.
  • Market Trends and Demand: Analyse consumer preferences, such as the shift towards athleisure and sustainable products, to identify companies aligning with these trends.
  • Financial Health: Assess a company's revenue growth, profit margins, and debt levels. For instance, Metro Brands' recent revenue growth indicates strong market demand.
  • Competitive Landscape: Examine market share, distribution channels, and innovation strategies to identify companies with a competitive edge.
  • Regulatory Environment: Stay informed about government policies affecting the sector, such as import-export regulations and labour laws.
  • Cost Structure: Understand the impact of raw material costs and supply chain efficiencies on profitability.
  • Consumer Preferences: Trends towards athleisure and sustainable products can boost demand.
  • Economic Conditions: Economic downturns can reduce consumer spending on non-essential items like footwear.
  • Seasonality: Sales may fluctuate based on seasons and major sporting events, which can increase demand for specific footwear types.
  • Raw Material Costs: Fluctuations in material costs can impact profit margins.
  • Competition: The presence of strong competitors can affect market share and pricing power.
  • Regulatory Changes: New regulations regarding labour, trade, or environmental standards can influence operational costs and practices.
  • Capital Appreciation: An increase in the stock's market price over time.
  • Dividends: Periodic profit distributions to shareholders.
  • Research Extensively: Study market trends, consumer behaviour, and economic indicators to identify growth opportunities.
  • Diversify Investments: Spread investments across multiple companies to mitigate risk.
  • Monitor Financial Metrics: Keep an eye on revenue growth, profit margins, and debt levels of companies.
  • Stay Updated on Regulations: Be aware of changes in trade policies, taxation, and labour laws affecting the industry.
  • Evaluate Management Quality: Assess the experience and track record of a company's leadership team.
  • Consider Valuation: Ensure that stock prices are justified by the company's earnings and growth prospects.
  • Market Growth: The Indian footwear industry is projected to reach a valuation of $90 billion by 2030, driven by rising disposable incomes and a growing middle class.
  • Consumer Trends: There's an increasing demand for branded and fashionable footwear, especially among the youth demographic, which is expanding rapidly.
  • Government Support: Initiatives like the Special Package for Footwear and Accessories aim to boost production and exports, enhancing the industry's growth prospects.
  • Diversification: The footwear sector provides a unique investment opportunity, diversifying portfolios beyond traditional industries.
  • Established Players: Companies such as Bata India, Relaxo Footwears, and Metro Brands have demonstrated resilience and growth, indicating potential for investors.
  • Market Dynamics: The Indian footwear market is valued at $26 billion in 2024 and is expected to reach $90 billion by 2030, indicating substantial growth potential.
  • Consumer Trends: There's a growing preference for branded and fashionable footwear, particularly among the youth demographic, which is expanding rapidly.
  • Government Initiatives: Programs like the Special Package for Footwear and Accessories aim to boost production and exports, enhancing the industry's growth prospects.
  • Company Performance: Leading companies such as Bata India, Relaxo Footwears, and Metro Brands have shown resilience and growth, indicating potential for investors.
  • Diversification: Investing in the footwear sector can diversify your portfolio, potentially balancing risks associated with other industries.
  • Market Volatility: The sector has experienced fluctuations, with some companies like Khadim India seeing a 20% drop in stock value over a month.
  • Economic Sensitivity: Footwear sales can be affected by economic downturns, leading to reduced consumer spending.
  • Competition: The market is highly competitive, with numerous domestic and international brands vying for market share.
  • Regulatory Changes: Changes in trade policies or import duties can impact profitability, especially for companies reliant on imported materials.
  • Operational Challenges: Companies may face issues like supply chain disruptions, increased raw material costs, and changing consumer preferences.
  • Market Expansion: The Indian footwear industry is projected to grow at a compound annual growth rate (CAGR) of 13% by FY28, reaching approximately ₹191,000 crore.
  • Diversification: Footwear stocks provide exposure to the consumer goods sector, aiding in portfolio diversification.
  • Stable Demand: Footwear is a basic necessity, ensuring consistent demand across various economic cycles.
  • Government Initiatives: Policies supporting the leather and footwear sectors aim to boost manufacturing and exports, potentially enhancing company revenues.
  • Leading Companies: Established brands like Bata India, Relaxo Footwears, and Metro Brands have a strong market presence, offering potential investment opportunities.
  • Retail Investors: Individuals with a Demat and trading account can purchase shares of footwear companies through stock exchanges.
  • Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies often include footwear stocks in their diversified portfolios.
  • Foreign Investors: Non-resident Indians (NRIs) and foreign institutional investors (FIIs) can invest in Indian footwear stocks, subject to regulatory guidelines.
  1. Open a Demat and Trading Account: Choose a reputable brokerage firm to facilitate stock transactions.
  2. Research Potential Investments: Analyse financial health, market position, and growth prospects of footwear companies.
  3. Place Your Order: Use your trading platform to buy desired shares, specifying quantity and price.
  4. Monitor Your Investments: Regularly review stock performance and stay informed about industry trends.
  • Product Range: Companies offering a diverse range of products, including essential and affordable footwear, may experience steadier sales compared to those focusing solely on premium segments.
  • Brand Loyalty: Established brands with strong customer loyalty often retain market share, even when consumers reduce overall spending.
  • Operational Efficiency: Firms with efficient cost structures and supply chains are better positioned to maintain profitability during economic slowdowns.
  • Focus Product Scheme: Aimed at enhancing productivity and competitiveness, this scheme is expected to:
    • Create employment for 2.2 million individuals.
    • Generate a turnover of ₹4 lakh crore.
    • Achieve exports over ₹1.1 lakh crore.
  • Customs Duty Exemptions: The budget proposes:
    • Full exemption of Basic Customs Duty on wet blue leather, reducing input costs for manufacturers.
    • Removal of the 20% export duty on crust leather, encouraging higher exports.
  • Market Expansion: Currently valued at $26 billion, the market is projected to reach $90 billion by 2030, driven by increasing demand for non-leather footwear.
  • Shift to Non-Leather Products: The non-leather footwear segment is expected to grow substantially, aligning with global trends towards sustainable and vegan products.
  • Government Initiatives: Policies such as 'Make in India' and the reduction of excise duties aim to boost domestic manufacturing, enhancing the sector's competitiveness.
  • E-commerce Growth: The rise of online retail platforms has expanded market reach, especially in Tier II and III cities, offering a broader consumer base for footwear companies.
  • GDP Contribution: The sector accounts for approximately 2% of India's Gross Domestic Product (GDP).
  • Employment: Employing over 4 million people, the industry plays a vital role in job creation, with a substantial portion of the workforce being women.
  • Global Production Share: India is the second-largest global producer of footwear, contributing about 13% to worldwide production.
  • Market Growth: Projections indicate the market could reach $90 billion by 2030, suggesting robust expansion potential.
  • Consumer Trends: A shift towards non-leather footwear, driven by younger, fashion-conscious consumers, is expected to reshape the market landscape.
  • Policy Support: Government initiatives promoting domestic manufacturing and export incentives are likely to bolster industry growth.
  • Robust Market Growth: The Indian footwear market, valued at $26 billion in 2024, is projected to reach $90 billion by 2030, indicating a significant expansion trajectory.
  • Government Initiatives: The Union Budget 2025-2026 introduced a focused product scheme for the footwear and leather sectors, aiming to create 2.2 million jobs and generate a turnover of ₹4 lakh crore. This policy support is expected to enhance industry profitability.
  • Positive Stock Performance: Following the budget announcement, leading footwear companies experienced notable stock surges. For instance, Relaxo Footwears' share price increased by 8.8%, and Liberty Shoes rallied by 7.4%, reflecting heightened investor confidence.
  • Khadim India Limited: Founded in 1981 and based in Kolkata, Khadim's operates a vast retail network across India, offering a wide range of affordable footwear. The company has a significant presence in the eastern and southern regions of the country.
  • RedTape: Established in 1996, RedTape is a premium Indian footwear brand owned by Mirza International Limited. Known for its stylish and high-quality products, RedTape has a strong presence both in India and international markets, including the UK and USA. The brand offers a diverse range of footwear, apparel, and accessories, appealing to urban, style-conscious consumers.
  • Sreeleathers Limited: Based in Kolkata, Sreeleathers is renowned for offering affordable footwear products with a focus on quality and durability. The company has an extensive retail network, particularly in eastern India, catering to budget-conscious consumers.
  • Lehar Footwears Limited: Specialising in budget-friendly footwear, Lehar Footwears caters to a broad audience in rural and semi-urban areas. The company is known for its affordable yet durable products, making it a popular choice in its segment.
  • Mirza International Limited: Founded in 1979, Mirza International is one of India's leading footwear manufacturers and exporters. The company owns the popular brand RedTape and has a significant international presence, supplying products to over 24 countries, including the UK, USA, and UAE. Mirza International is recognised for its integrated manufacturing operations and a strong brand portfolio.

• Intellectual Property (FY24)

  New Initiatives (FY24)

  Growth Outlook (FY25)

  Relaxo Footwears Financial Snapshot^*

  Name	CMP Rs.	P/E	Mar Cap Rs.Cr.	Div Yld %	NP Qtr Rs.Cr.	Qtr Profit Var %	Sales Qtr Rs.Cr.	Qtr Sales Var %	ROCE %
  Relaxo Footwears	469.45	66.59	11686.42	0.64	33.01	-14.42	666.90	-6.43	13.86

  ^{*Note: CMP – Current Market Price; P/E – Price to Earnings Ratio; Mar Cap – Market Capitalisation; Div Yld – Dividend Yield; NP Qtr – Net Profit for the Quarter; Qtr Profit Var – Quarterly Profit Variation; Sales Qtr – Sales for the Quarter; Qtr Sales Var – Quarterly Sales Variation; ROCE – Return on Capital Employed.}

  Overview of Campus Activewear

  Campus Activewear Financial Snapshot^*

  Name	CMP Rs.	P/E	Mar Cap Rs.Cr.	Div Yld %	NP Qtr Rs.Cr.	Qtr Profit Var %	Sales Qtr Rs.Cr.	Qtr Sales Var %	ROCE %
  Campus Activewear	268.60	68.99	8203.00	0.26	46.47	86.70	514.80	9.07	16.71

  ^{*Note: CMP – Current Market Price; P/E – Price to Earnings Ratio; Mar Cap – Market Capitalisation; Div Yld – Dividend Yield; NP Qtr – Net Profit for the Quarter; Qtr Profit Var – Quarterly Profit Variation; Sales Qtr – Sales for the Quarter; Qtr Sales Var – Quarterly Sales Variation; ROCE – Return on Capital Employed.}

  Overview of Liberty Shoes Limited

  Foundation and History:

  Product Portfolio:

  Sub-Brands:

  The company's portfolio includes brands such as Fortune, Healers, Lucy n Luke, Warrior, Windsor, Senorita, Tiptop, Footfun, Prefect, Force10, Gliders, Coolers, Aha, and Leap7x.

  Manufacturing Facilities:

  Distribution Network:

  Financial Highlights (Q3 FY2024):

  Recent Developments:

  Sustainability Initiatives:

  Stock Exchange Listings:

  Liberty Shoes Financial Snapshot^*

  Name	CMP Rs.	P/E	Mar Cap Rs.Cr.	Div Yld %	NP Qtr Rs.Cr.	Qtr Profit Var %	Sales Qtr Rs.Cr.	Qtr Sales Var %	ROCE %
  Liberty Shoes	374.45	35.57	638.06	0.00	2.37	740.74	160.10	5.27	9.45

  ^{*Note: CMP – Current Market Price; P/E – Price to Earnings Ratio; Mar Cap – Market Capitalisation; Div Yld – Dividend Yield; NP Qtr – Net Profit for the Quarter; Qtr Profit Var – Quarterly Profit Variation; Sales Qtr – Sales for the Quarter; Qtr Sales Var – Quarterly Sales Variation; ROCE – Return on Capital Employed.}

  What Factors Should One Consider Before Investing in Footwear Sector Stocks in India?

  Investing in the Indian footwear sector requires careful evaluation of several key factors:

  Utilising a brokerage calculator can aid in determining transaction costs and potential returns, enhancing investment decisions.

  What Factors Influence the Performance of Footwear Stocks?

  The performance of footwear stocks is influenced by various factors:

  How Do Footwear Stocks Work?

  Footwear stocks represent ownership in companies engaged in designing, manufacturing, and selling footwear products. Investors can buy and sell these stocks through stock exchanges, aiming to profit from:

  Stock prices are influenced by the company's financial performance, market trends, and broader economic factors. Engaging in intraday trading allows investors to capitalise on short-term price movements within the same trading day, though this approach carries higher risk and requires careful analysis.

  Tips for Investing in the Footwear Industry in India

  To navigate investments in the Indian footwear industry effectively:

  By adhering to these guidelines, investors can make informed decisions and potentially enhance returns in the dynamic Indian footwear market.

  Why Invest in Footwear Stocks?

  Investing in footwear stocks offers several compelling reasons:

  Should You Invest in Footwear Stocks?

  Deciding to invest in footwear stocks requires careful consideration:

  While the sector shows promise, it's essential to conduct thorough research and consider your financial goals and risk tolerance before investing.

  What are the Risks of Investing in Footwear Stocks in India?

  Investing in Indian footwear stocks carries certain risks:

  Potential investors should assess these risks in relation to their investment objectives and risk tolerance.

  What are the advantages of investing in Footwear Stocks in India?

  Investing in India's footwear stocks offers several benefits:

  Who Can Invest in Footwear Stocks?

  Investing in footwear stocks is accessible to a wide range of individuals:

  Before investing, it's crucial to assess financial goals, risk tolerance, and conduct thorough research or consult financial advisors.

  How To Invest In Footwear Stocks?

  To invest in footwear stocks in India, follow these steps:

  Diversifying your portfolio and staying updated with market developments can help manage risks and enhance potential returns.

  What is the Impact of Government Policies on Footwear Stocks?

  Government policies significantly influence the performance of footwear stocks in India. In the Union Budget 2025-2026, Finance Minister Nirmala Sitharaman introduced a 'Focus Product Scheme' aimed at enhancing the productivity, quality, and competitiveness of the footwear and leather sectors. This initiative is projected to facilitate employment for 2.2 million individuals, generate a turnover of ₹4 lakh crore, and achieve exports exceeding ₹1.1 lakh crore.

  Additionally, the budget proposed a full exemption of Basic Customs Duty on wet blue leather, a critical raw material for the industry. This measure is expected to reduce production costs and boost profitability for domestic manufacturers.

  These policy interventions have positively impacted investor sentiment, leading to notable gains in footwear stocks. For instance, shares of companies like Relaxo Footwears and Liberty Shoes experienced significant upticks following the budget announcement.

  In summary, supportive government policies, including financial incentives and import duty exemptions, play a crucial role in bolstering the footwear industry's growth, directly influencing the performance of related stocks.

  How Do Footwear Stocks Perform in Economic Downturns?

  During economic downturns, consumer spending typically declines, affecting discretionary sectors like footwear. However, the impact on footwear stocks can vary based on several factors:

  While specific data on the performance of Indian footwear stocks during past economic downturns is limited, it's reasonable to infer that companies combining a broad product portfolio, strong brand recognition, and operational efficiency are more resilient in challenging economic conditions.

  Footwear Stocks Sector Highlights from Union Budget 2025-2026

  The Union Budget 2025-2026 introduced several measures to bolster the footwear sector:

  These initiatives aim to strengthen domestic manufacturing, boost exports, and create substantial employment opportunities within the footwear and leather sectors.

  Future Trends and Opportunities of Investing in Footwear Stocks

  The Indian footwear industry is poised for significant growth, presenting numerous investment opportunities:

  Investors may find promising prospects in companies adapting to these trends, focusing on innovation, sustainability, and leveraging digital channels to reach a diverse customer base.

  What is the GDP Contribution of the Footwear Sector?

  The footwear industry is a significant contributor to India's economy:

  These figures underscore the footwear sector's importance in India's industrial landscape, highlighting its role in economic growth and employment generation.

  What is the Future of Footwear Stocks?

  The outlook for footwear stocks in India appears promising:

  Investors should consider companies that are agile in adapting to changing consumer preferences, committed to sustainability, and capable of leveraging policy benefits to enhance their market position.

  Why is It Worth Buying the Footwear Stocks Now?

  Investing in top footwear stocks by market cap in India presents a compelling opportunity due to several favourable factors:

  These factors collectively suggest that investing in premier footwear stocks now could yield substantial returns, capitalising on market growth, supportive policies, and positive stock momentum.

  Conclusion

  The Indian footwear industry is poised for significant growth, making it an attractive sector for investors. With strong market projections, rising consumer demand, and favourable government policies, top footwear stocks by market cap have demonstrated resilience and potential for long-term returns. Our detailed analysis of leading footwear companies by market capitalisation highlights key players shaping the industry's future. While investing in this sector offers promising opportunities, understanding the risks, including economic downturns and policy changes, is crucial. As the industry evolves, staying informed about emerging trends, sustainability initiatives, and financial performance will be key to maximising returns. Whether you're a seasoned investor or just starting, the footwear sector presents a compelling investment avenue in India’s growing consumer market.

  Other Popular Footwear Stocks in India

  Some popular footwear stocks in India include: