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nav_1996
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Quote nav_1996 Replybullet Topic: Liberty Shoes - Can it be a multibagger
    Posted: 05/Jun/2007 at 3:03pm
Liberty shoes with a market cap of 230 CR has huge upside potential.

I think it is most visible shoe/retailer after Bata.
Now even if they catch up with Bata we have 5 bagger.

It is trading at discount to Bata in terms of MCAP/Sales 1.4 for Bata and 1 for Liberty.

Given some intelligent moves like JV with Pantaloon for Shoe Factory and its own retail foray, Liberty should be able to mtach Bata.

Looks like market is yet to value its retail foray. But as retail evolves in India, comapnies like Liberty stand to gain.
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s_praharaj
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Quote s_praharaj Replybullet Posted: 05/Jun/2007 at 11:39pm
Liberty shoes are one of the best shoes manufactured in India.
If you buy a pair of Liberty shoes, you can find out the quality of it.
Due to labour problems, their factory was closed for nearly nine months.There was  a settlement with the workers and the factory at Haryana started working from Dec 2006. They are one of the suppliers of shoes to the wall mart. They also sell their shoes from their website.
 
All is well for the company, except that it does not get its recognition from the market. When the strikes were called off, I bought a very small quantity of this company at around 150 level. I waited till the last qtr07 results were declared. Though the result was good, the price hardened, so I exited the company.
 
Though I do not have any holding in the company, still I love their product.
I heard somewhere that a section of the brokers does not trade in leather shares. Is that the reason for its low rate.


Edited by s_praharaj - 05/Jun/2007 at 11:42pm
Shashi Praharaj
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nav_1996
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Quote nav_1996 Replybullet Posted: 05/Jun/2007 at 11:44pm
True, in last couple of years, I have returned a number of times from Bata and finally ended up buying Liberty for my kid.
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basant
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Quote basant Replybullet Posted: 05/Jun/2007 at 9:58am
I heard somewhere that a section of the brokers does not trade in leather shares. Is that the reason for its low rate.
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I would not think so. many brokers do not trade in alchohol, cigarrettes etc but those companies have done tremendously!
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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xbox
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Quote xbox Replybullet Posted: 05/Jun/2007 at 10:58am
Liberty shoes are one of the best shoes manufactured in India.
-----------------
100% correct. And story ends here.Cry
Don't bet on pig after all bull & bear in circle.
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tyler_durden
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Quote tyler_durden Replybullet Posted: 05/Jun/2007 at 11:44am
every time i had gone to a liberty showroom i have seen customers coming up with complaints....may be its a coincident but it has happened with me for at least 4-5 times....
If you aren't fired with enthusiasm, you will be fired with enthusiasm.
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nav_1996
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Quote nav_1996 Replybullet Posted: 22/Jun/2007 at 3:33am
Just some analysis of US footwear manufactures, Wolverine World Wide(WWW) and Timberland(TBL). They typically trade at 1 to 1.5 times sales and 15-20 PE. Bata is similar. Going by that standard Liberty is defintely not dirt cheap but it is not too costly either. But what I like about them is their aggressive foray into retailing with diffrent formats and huge capacity expansion in tax-free zones. If executed well all this should lead to doubling of share price in 2 years.
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Quote basant Replybullet Posted: 22/Jun/2007 at 11:03am
I think Liberty's big retail foray with pantaloon should do well. That is because single brand stores are difficult to exist. people want to look at all types of choices before really buying an item. I think that wasa  reason for Sangam (HLL retail foray) not doing well. They were pushing products from the Lever stable only. 
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