NSEI:LIBERTSHOE

Stock Analysis Report

Executive Summary

Liberty Shoes Limited manufactures and trades in footwear, accessories, and lifestyle products in India and internationally.


Snowflake Analysis

Acceptable track record with mediocre balance sheet.

Share Price & News

How has Liberty Shoes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LIBERTSHOE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.4%

LIBERTSHOE

-2.4%

IN Luxury

-3.0%

IN Market


1 Year Return

-39.5%

LIBERTSHOE

-26.9%

IN Luxury

-29.2%

IN Market

Return vs Industry: LIBERTSHOE underperformed the Indian Luxury industry which returned -26.9% over the past year.

Return vs Market: LIBERTSHOE underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

LIBERTSHOEIndustryMarket
7 Day19.4%-2.4%-3.0%
30 Day-17.9%-28.4%-26.9%
90 Day-33.7%-25.6%-28.5%
1 Year-39.5%-39.5%-26.2%-26.9%-27.7%-29.2%
3 Year-47.5%-47.5%0.8%-1.6%-15.2%-19.9%
5 Year-64.6%-64.9%43.7%38.6%-3.1%-8.1%

Price Volatility Vs. Market

How volatile is Liberty Shoes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Liberty Shoes undervalued compared to its fair value and its price relative to the market?

14.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LIBERTSHOE (₹91.35) is trading above our estimate of fair value (₹84.02)

Significantly Below Fair Value: LIBERTSHOE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LIBERTSHOE is poor value based on its PE Ratio (14.5x) compared to the Luxury industry average (7.8x).

PE vs Market: LIBERTSHOE is poor value based on its PE Ratio (14.5x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LIBERTSHOE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LIBERTSHOE is overvalued based on its PB Ratio (0.9x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

How is Liberty Shoes forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.9%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Liberty Shoes has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Liberty Shoes performed over the past 5 years?

-12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIBERTSHOE has a large one-off gain of ₹51.0M impacting its December 31 2019 financial results.

Growing Profit Margin: LIBERTSHOE's current net profit margins (1.8%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: LIBERTSHOE's earnings have declined by -12% per year over the past 5 years.

Accelerating Growth: LIBERTSHOE's earnings growth over the past year (49.2%) exceeds its 5-year average (-12% per year).

Earnings vs Industry: LIBERTSHOE earnings growth over the past year (49.2%) exceeded the Luxury industry 6.4%.


Return on Equity

High ROE: LIBERTSHOE's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is Liberty Shoes's financial position?


Financial Position Analysis

Short Term Liabilities: LIBERTSHOE's short term assets (₹3.8B) exceed its short term liabilities (₹2.7B).

Long Term Liabilities: LIBERTSHOE's short term assets (₹3.8B) exceed its long term liabilities (₹234.0M).


Debt to Equity History and Analysis

Debt Level: LIBERTSHOE's debt to equity ratio (71.2%) is considered high.

Reducing Debt: LIBERTSHOE's debt to equity ratio has reduced from 92.8% to 71.2% over the past 5 years.

Debt Coverage: LIBERTSHOE's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: LIBERTSHOE's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: LIBERTSHOE has a high level of physical assets or inventory.

Debt Coverage by Assets: LIBERTSHOE's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Liberty Shoes's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LIBERTSHOE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LIBERTSHOE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LIBERTSHOE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LIBERTSHOE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LIBERTSHOE is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LIBERTSHOE's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.9yrs

Average management tenure


CEO

Adesh Gupta (59yo)

16.17s

Tenure

₹4,800,000

Compensation

Mr. Adesh Kumar Gupta, B.E(Mechanical Eng.) serves as the Chairman of Liberty Shoes Ltd. Mr. Gupta has been the Chief Executive Officer of Liberty Shoes Ltd since January 8, 2004. He served as the Chairman ...


CEO Compensation Analysis

Compensation vs Market: Adesh's total compensation ($USD63.68K) is above average for companies of similar size in the Indian market ($USD48.50K).

Compensation vs Earnings: Adesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Adesh Gupta
Chairman & CEO16.17yrs₹4.80m4.55% 71.0m
Munish Kakra
CFO, Company Secretary & Compliance Officerno datano datano data
Shammi Bansal
Executive Director29.5yrs₹4.80m6.09% 95.1m
Sunil Bansal
Executive Director29.33yrsno data1.37% 21.3m
Vivek Bansal
Head of Production PVC & Non Leather Divisionno datano data1.37% 21.4m
Adish Gupta
Executive Director8.58yrs₹4.80m4.98% 77.8m
Ashok Kumar
Executive Director5.17yrs₹1.32mno data
Satish Saini
Chief Financial Officer of Retail12.58yrsno datano data
Ramesh Sadhu
Chief Executive Officer of Retailno datano datano data
Ram Prakash
Head of Information Technology10.75yrsno datano data

11.9yrs

Average Tenure

55yo

Average Age

Experienced Management: LIBERTSHOE's management team is seasoned and experienced (11.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adesh Gupta
Chairman & CEO16.17yrs₹4.80m4.55% 71.0m
Shammi Bansal
Executive Director29.5yrs₹4.80m6.09% 95.1m
Sunil Bansal
Executive Director29.33yrsno data1.37% 21.3m
Adish Gupta
Executive Director8.58yrs₹4.80m4.98% 77.8m
Ashok Kumar
Executive Director5.17yrs₹1.32mno data
Shailendra Gupta
Non-executive Independent Director0.50yrno datano data
Raghubar Dayal
Independent Non-Executive Director14.25yrs₹110.00kno data
Ramesh Palhan
Independent Non-Executive Director8yrs₹110.00k0.0012% 18.3k
Pushpinder Grewal
Independent Non-Executive Director7.58yrs₹35.00kno data
Lovelena Mody
Women Independent Director5.17yrs₹35.00kno data

8.0yrs

Average Tenure

63yo

Average Age

Experienced Board: LIBERTSHOE's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Liberty Shoes Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Liberty Shoes Limited
  • Ticker: LIBERTSHOE
  • Exchange: NSEI
  • Founded: 1954
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: ₹1.560b
  • Shares outstanding: 17.04m
  • Website: https://www.libertyshoes.com

Number of Employees


Location

  • Liberty Shoes Limited
  • Liberty House
  • Liberty Road
  • Karnal
  • Haryana
  • 132001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
526596BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1995
LIBERTSHOENSEI (National Stock Exchange of India)YesEquity SharesININRSep 1995

Biography

Liberty Shoes Limited manufactures and trades in footwear, accessories, and lifestyle products in India and internationally. The company offers footwear products, such as casual, formal, sports, fashion, women, kids, and men footwear under the Leap7X, Healers, Fortune, Force 10, Senorita, Lucky Luke, Gliders, AHA, Rebounce, Coolers, and Perfect brand names. It operates through 100 distributors and 425 exclusive showrooms, as well as online. Liberty Shoes Limited was founded in 1954 and is headquartered in Karnal, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:13
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.