Liberty Shoes - Can it be a multibagger
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=938
Printed Date: 28/Apr/2024 at 9:45pm
Topic: Liberty Shoes - Can it be a multibagger
Posted By: nav_1996
Subject: Liberty Shoes - Can it be a multibagger
Date Posted: 05/Jun/2007 at 3:03pm
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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. |
Replies:
Posted By: s_praharaj
Date Posted: 05/Jun/2007 at 11:39pm
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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. ------------- Shashi Praharaj |
Posted By: nav_1996
Date 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. |
Posted By: basant
Date Posted: 05/Jun/2007 at 9:58am
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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 |
Posted By: xbox
Date Posted: 05/Jun/2007 at 10:58am
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Liberty shoes are one of the best shoes manufactured in India.
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100% correct. And story ends here.  ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: tyler_durden
Date Posted: 05/Jun/2007 at 11:44am
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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. |
Posted By: nav_1996
Date 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. |
Posted By: basant
Date Posted: 22/Jun/2007 at 11:03am
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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. ------------- '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 |
Posted By: nav_1996
Date Posted: 22/Jun/2007 at 11:25am
| Yes Bansatjee, Earlier Liberty had their own 8-10 store called Revolutions but just had Liberty shoes. I liked the Shoe Factory in Cosmos Mall near my apt. They have right focus with most men pairs costing between 1000-2000. |
Posted By: deveshkayal
Date Posted: 22/Jun/2007 at 11:30am
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Looks like Bagliga recommeded this "multibagger" stock on PYT and went up 16% in one day.When i visit moneycontrol, PYT flash in between... ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: j2eeprofessiona
Date Posted: 30/Dec/2013 at 12:32pm
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Dolly Khanna, the investor with the Golden touch has entered in this stock in the last quarter. Also, the last two - three quarters have been stupendous. The stock has broken out after 4 yrs of consolidation and can give tremendous returns in the next 2 yrs. This is also backed by change in fundamentals of the company. P.S: This is part of my core-portfolio and I hope somebody is also researching this stock. If yes, then lets discuss more about the stock. |
Posted By: navtej91
Date Posted: 06/Jan/2014 at 9:04pm
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i have been looking at this stock for a while but some how i feel mirza and relaxo a better buy... on basic comparison both have better return on capital employed and better credit management ... ofcourse bata been the best ... Liberty has a gud brand name but not a great balance sheet management
note. mirza international is my portfolio |
Posted By: j2eeprofessiona
Date Posted: 08/Apr/2014 at 12:45pm
| http://www.vccircle.com/news/retail/2014/04/04/footwear-maker-liberty-merging-retailing-arm-itself |
Posted By: j2eeprofessiona
Date Posted: 14/Apr/2014 at 2:44pm
| A weekly closing above 161 levels with big volumes.... next week's result would be a important trigger. |