Best Footwear Stocks in India for April 2025 – Based on 5Y CAGR

The footwear industry has the potential to expand up to US$ 80 billion by 2030, which is 8 times its current size. This growth could create employment opportunities for over 3 million people and serve as a catalyst for entrepreneurship in the SME sector. Launching a footwear production unit takes only 6 months, including 4-6 weeks of skill training, and the industry is environmentally friendly. By 2040, the demand for footwear is expected to exceed 10 billion pairs annually.

The Union Budget for 2025-26 introduced a new Focus Product Scheme to boost productivity, quality, and competitiveness in the footwear sector. This initiative will support the development of design capacity, component manufacturing, and machinery for both leather and non-leather footwear.

With a projected turnover of ₹4 lakh crore and the potential to create 22 lakh jobs, this scheme is poised to drive industry growth and attract investment. Given these developments, let’s take a look at the top footwear stocks in March 2025, based on their 5-year CAGR performance.

Best Footwear Stocks in India For April 2025 Based on 5Y CAGR

Overview of 5 Best Footwear Companies in India Based on 5Y CAGR

1. Lehar Footwears Ltd

Incorporated in 1994, Lehar Footwears Ltd is a mass -footwear manufacturer and brand distribution company. The company’s growth drivers include new product development and branding of its products in international markets, entering into new geographies, thereby increasing the company’s TAM.

Key Metrics:

• ROE: 6.88%
• ROCE: 9.15%

2. Mirza International Ltd

Incorporated in 1979, Mirza International Ltd is a manufacturer & exporter of finished leather and footwear and a trader of footwear, apparel and allied products. The company experienced a 43% drop in revenue QoQ, with total income decreasing to ₹114.92 crores. The company recorded a net loss of ₹5.69 crores, reflecting a sharp 229.3% decline compared to the same period last year.

Key Metrics:

• ROE: 2.22%
• ROCE: 4.87%

3. Khadim India Ltd

Founded in 1981, Khadim India Ltd. is engaged in the manufacturing / retail business of footwear and accessories. During Q3FY25, the company reported a revenue of ₹1,601.7 million, marking a 2.5% YoY increase. For 9MFY25, revenues totaled ₹4,746.5 million, reflecting a modest 0.7% YoY growth. The gross margin for the quarter was 44.6%, while for the 9-month period of FY25, the gross margin stood at 46.7%, showing a decline of 160 basis points.

Key Metrics:

• ROE: 2.85%
• ROCE: 7.80%

4. Liberty Shoes Ltd

Incorporated in 1954, Liberty Shoes manufactures and trades footwear and accessories. The domestic market for fashion footwear is growing quickly, fueled by a rising middle class and increasing disposable income. This creates a solid foundation for local brands to expand and innovate.

Key Metrics:

• ROE: 7.21%
• ROCE: 9.45%

5. Super House Ltd

Founded in 1980, Superhouse Ltd manufactures and trades Leather, Leather Goods and Textile Goods, etc. The company’s growth drivers include strong export opportunity in existing and new markets, solid recognition in developed and emerging markets and rising share of premium speciality products in the revenue mix.

Key Metrics:

• ROE: 2.70%
• ROCE: 6.06%

Factors to Consider Before Investing in Footwear Stocks in India 

1. Market Demand and Consumer Behavior: With increasing disposable income, especially in urban areas, there is a growing demand for premium footwear. Understanding the purchasing power of the target market is essential.
2. Company Fundamentals: Analyze the financial health of footwear companies. Look at their revenue growth, profit margins, and cost management. Strong and consistent performance is a good indicator of a solid company.
3. Brand Strength and Recognition: Companies with well-known brands are often less risky due to their established presence in the market. Strong brands tend to perform better in both good and bad times.
4. Supply Chain and Distribution Network: Footwear production involves raw materials such as rubber, leather, and synthetic materials. A company’s ability to control its supply chain and maintain efficiency can influence its profitability.
5. Government Regulations: Changes in government policies related to import duties on raw materials or finished products could impact margins.

Conclusion

The government has showcased support for the development of the footwear sector by introducing a new Focus Product Scheme to boost productivity, quality, and competitiveness in the footwear sector in the union budget 2025-26. Before investing in footwear stocks in India, thorough research and an understanding of the company’s fundamentals, the competitive landscape, economic conditions, and consumer behavior are essential.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.