Top Picks for Footwear Stocks to Buy in India 2024
Are you looking to diversify your investment portfolio in 2024? Footwear stocks can be a profitable option for you. With constantly evolving lifestyles, the Indian footwear industry is rapidly growing, with great opportunities for you to yield high returns.
However, how do you choose which footwear stock to invest in in this competitive market? Here are your answers.
Bhartiya International Ltd
Bhartiya International Ltd is a prominent name in the market, specialising in the manufacturing and trading of leather and textile products. It extends its influence into real estate, offering commercial and retail spaces. The company is the largest manufacturing export house for leather apparel and accessories in India.
Over the last 5 years, the company has delivered a profit growth of 30.3% CAGR and an ROE of 17.6%, promising growth in the future.
Metro Brands Ltd
Metro Brands Ltd is a leading Indian footwear and accessories speciality retailer, renowned among aspirational brands in the footwear category. With 826 stores across India, it is a one stop destination for branded products catering to men, women, unisex, and children for various occasions, from casual to formal events.
Metro has seen a profit growth of 20.6% CAGR in the past 5 years and has maintained a dividend payout of 39.1%. It has earned an ROE of 25.4%, making it a great investment choice.
Campus Activewear Ltd
Campus Activewear Ltd, popularly known as Campus, is one of India's most prominent sports and athletic footwear brands in value and volume. The company offers an extensive range and manufactures and distributes affordable footwear like running shoes, walking shoes, casual shoes, floaters, slippers, flip-flops, and sandals.
Campus has achieved a 30% CAGR in the last five years and an ROE of 23.8%. The company yielded great returns in the last financial year and is expected to extend that growth this year.
Relaxo Footwear Ltd
Relaxo Footwears Ltd, India's largest footwear manufacturer, specialises in non-leather products like rubber or EVA slippers, canvas shoes, sports shoes, sandals, and school shoes, dominating the value segment. With a four-decade legacy, Relaxo is among the top 500 most valuable companies in India.
This multinational company shows a dividend payout of 29.4%.
Lehar Footwears Ltd
Lehar Footwears Ltd is a leading mass-footwear manufacturer and brand distribution company, offering men and women a diverse range of footwear. It specialises in manufacturing canvas shoes, lightweight chappals, and EVA injection footwear.
Lehar Footwear is expected to perform well in the quarter, with a profit growth of 21% CAGR over the last 5 years. The company also projects a PE ratio 31.6, making it a strong contender for valuable investment.
Why should you consider investing in footwear brands?
High growth potential
The Indian footwear market was valued at $24.86 billion in 2023 and has projected growth of 12.83% over the last five years. The industry is expected to grow further until 2028, which provides you with an opportunity for long-term investment returns.
The make-in-India boost
With the Make in India initiative encouraging brands to manufacture in-house and not depend on international exports, footwear brands are attracting more investments and growth in the long run.
High production and consumption
India is the second-largest producer and consumer of shoes, with 95% of the produce consumed domestically. This has led to an innovative, evolving industry where brands constantly try to out-deliver and meet consumer expectations. This can be beneficial for your financial plans.
A healthy investment portfolio should have stocks from different industries to avoid the risk of loss. So when one of your stocks takes a hit, you can still save money with other sustaining industries. With the growth potential that the footwear industry offers, it is a safe choice for investment.
Conclusion
The Indian footwear industry, as promising as it is, still has risks. However, with proper research and a good understanding of the market, you can leverage industry growth and enjoy the best possible returns that help you reach your personal financial goals faster. So, choose your investments wisely.
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