Best Footwear Stocks In India

Best Footwear Stocks in India 2024 as per Analyst Ratings

Here are the top footwear stocks in 2024 as per the BUY Analyst Ratings provided by the I/B/E/S database. We have used Analyst Rating as a criteria here as the analysts run an across-the-board analysis of the market considering the company financials, market predictions, etc.

Here’s the list of top footwear shares according to the BUY analyst ratings-

Best Footwear Shares in India in 2024 (as per Market Capitalization)

Here, we have listed down some of the top footwear sector stocks as per market capitalisation.

Overview of Top Footwear Stocks in India

Here is a brief overview of the best footwear sector stocks as per analyst ratings and market capitalisation mentioned above-

1) Campus Active

Campus Active, a leading India-based footwear company, was founded in 2008. It is primarily engaged in manufacturing sports and athleisure footwear. The brand offers various choices across colour palettes, styles, and price points for men, women and kids.

The company has been catering to a wide range of customers with its trendy designs, comfort, and durable products.

2) Metro Brands

Metro Brands was founded in 1977. It is one of the most renowned brands in India, offering a vast catalogue of footwear. The company is currently operating over 800+ stores in 192 cities across Indian states and union territories.

The company offers multiple products under its own brands, such as Mochi, Metro, Da Vinchi, Walkway, etc., as well as other third-party brands, such as Skechers, Crocs, Fila, etc.

3) Bata India

Bata India, one of the most beloved footwear brands, was founded in 1931. The company is majorly involved in the manufacturing and trading of footwear via a widespread retail and wholesale network.

Some of its popular brands include Bata Comfit, Hush Puppies, Weinbrenner, Scholl and many more. Bata India has garnered immense trust and popularity over the years with its classic footwear catering to men, women and children. Apart from footwear, the company offers products such as wallets, handbags, t-shirts, joggers, and more.

4) Relaxo Footwears

Incorporated in 1984, Relaxo Footwears is currently one of the leading footwear companies in India. It has gained major popularity in the market due to its 3 brands, namely Bahamas, Flite, and Sparx.

Relaxo Footwears offers an extensive range of products that include flip-flops, sports shoes, sandals, and slippers. The company distributes its products nationwide through retail outlets and e-commerce websites.

5) Mirza International

Mirza International, a globally-present company, was established in 1979. It is India’s leading

leather footwear manufacturer, marketer, and exporter. With its strong presence in over 28 countries, the company has been offering a wide range of footwear products.

It presently has an Export Division and a Domestic Division engaged in manufacturing finished footwear, leather, etc.

Factors to Consider Before Investing in Footwear Stocks in India

While searching for footwear stocks, make sure to consider the below-listed factors-

• Market Trends and Demand

Consumer preferences, fashion trends, and purchasing patterns directly affect the demand for footwear. Hence, analyse such facets before investing in footwear stocks.

• Competitive Landscape

The Indian footwear industry is highly competitive. Hence, evaluate the market share of key players, their distribution networks, pricing strategies, and strength to determine the competitive landscape.

• Financial Performance

Another important factor to consider is the financial performance of footwear companies. Before investing any sum, determine the company’s revenue growth, return on investment, profitability margins, etc. Check if these indicators are consistent and reflect strong balance sheets.

• Brand Strength and Reputation

Brand reputation plays a key role in the footwear industry. Therefore, consider this factor and check the brand loyalty metrics, customer reviews and customer base to get a better understanding.

• Distribution Channels

Indian footwear companies primarily operate through retail stores, online platforms, and partnerships with wholesalers and distributors. Thus, assess the distribution channels utilised by footwear companies. Those with a robust omnichannel presence and effective distribution networks will likely have a good competitive advantage.

• Supply Chain and Manufacturing

Consider the efficiency and resilience of the supply chain and manufacturing processes of footwear companies. Check aspects such as manufacturing costs, geographical diversification of manufacturing facilities, production capacity, etc, to understand the scale.

Should You Invest in Footwear Stocks?

The footwear industry heavily depends on fashion trends, customer preferences and seasonal demand. Though it has been scaling, some setbacks are always likely to come in the way. Hence, if you have a keen interest in investing in footwear stocks, be sure to consider the growth prospects, market demand, brand strength, and competitive advantage of companies.

Conclusion

Investing in footwear stocks has often attracted investors, given its promising performance in the past. Due to factors such as a robust supply chain, consistent innovation, and brand loyalty, many footwear companies have been performing well in the stock market.

However, interested investors should consider investing in footwear stocks only after considering their investment objective, risk tolerance, financial performance of companies and growth opportunities.