The buying and spending habits of India’s do get a boost during the auspicious occasion of Diwali as it is believed to be Shubh. Everybody is in a hurry to add up new things to their closet as the largest fiesta of Diwali flagged off with Dhanteras today. The major spending might be seen in precious metals and automobiles but one needs to upgrade the essentials also. Other than buying clothes and shoes there are good opportunities in investing also, one can invest in the stocks of the company which manufactures these products. We bring you two shoe-maker stocks — Bata India and Liberty Shoes — that may fetch you up to 45% returns.
Bata India — IDBI Capital
Whoa! The stock of Bata had returned around 75% since January this year. The research and brokerage firm IDBI Capital has recommended it to buy this Diwali with a further upside of 25% to Rs 925 from its current market price of Rs 739. Bata has four strategically located manufacturing units with a production capacity of 21 million pairs of footwear per annum and the company has sold 47 million pairs in FY17. “With GST and consumer preference for evolving fashion, the growth range of 7-9% is given. The shift from unbranded to branded products is another catalyst. Further, presence in tier II and III towns will give the incremental delta. Hush Puppies, the prominent brand, continues to reach wide,” according to IDBI Capital.
Liberty Shoes — Globe Capital Market
Shares of Liberty Shoes have also returned about 75% in the current calendar year so far. The research and brokerage firm Globe Capital Market has recommended it to buy this Diwali with a massive upside of 45% to the target price of Rs 365 from its current market price of Rs 251. Liberty Shoes is one of the manufacturers in the leather footwear industry in India. Apart from being in the footwear industry, Liberty provides various footwear, shoe care and lifestyle accessories including backpacks, socks, belts, wallets, travel bags, and handbags for women. After implementation of GST footwear industry will be more organised. The company’s revenues now stand at Rs 500 crore and it is aiming to increase it to Rs 650 crore in two years.