Mutlibagger stock: This footwear company's share price has gained 70% in September so far – what should investors know?

Liberty Shoes share price jumped nearly 15 per cent to touch a four-year high at Rs 286.35 and 286.9 per share on the BSE and NSE intraday, respectively, in an otherwise weak market on Wednesday.

The stock in the last two trading sessions has soared over 32 per cent and has quoted at its highest level since January 2018. It had touched a record high of Rs 351 per share on July 22, 2014.

At around 11:10 AM, the stock traded over 12.5 per cent per cent higher at Rs 280.90 per share, as compared to a 0.35 per cent decline in the S&P BSE Sensex.

In September so far, the stock has outperformed the market as it has gained nearly 70 per cent against a 3 per cent decline in the S&P BSE Sensex.

In the last 6 months, the scrip has almost doubled (97 per cent growth) versus 1 per cent decline in the benchmark index.

In its regulatory filing, Liberty Shoes with respect to increase in volume, said, “The significant increase in the volume of our security is completely related to market-oriented and driven due to the reasons not under the control of the company.”

According to Centrum Broking, "The Indian footwear industry is a long-term structural story with multiple growth drivers in place. India’s per capita footwear at 1.9x is well below global per capita of 3x and developed countries’ (US, UK) per capita of 7x.”

Footwear industry grew at a healthy CAGR of 9 per cent from Rs 475 bn to Rs 720 bn over FY15-20 before being disrupted during the pandemic, the domestic brokerage said, adding that the footwear industry is expected to grow at 8 per cent CAGR over FY20-25 to Rs 1050 bn.

Premiumization, casualization, and digitization are the possible key trends going forward in the sector, Centrum Broking also pointed out.

Liberty Shoes caters to all sections of society and makes ten different brands to market in the domestic and international markets. The brands are Leap 7X, Healers, Lucy & Luke, and Aha among others. The company currently has the capacity to manufacture over 50,000 pairs a day.