Best Footwear Stocks In India

As one of the world's largest producers and consumers of footwear, India is a lucrative market for investors looking to capitalise on this expanding sector. Many footwear companies have demonstrated resilience and innovation despite being in a hyper-competitive landscape. As an investor, investing in some of the top footwear companies in the stock market could provide your portfolio with the impetus necessary for wealth creation. 

Top Footwear Stocks in India in 2024

Each of the five footwear stocks mentioned below has its own unique strengths and strategies for growth. Here is everything you need to know about these stocks, their business models, and key financial metrics.  

1. Relaxo Footwear Limited 

Founded in 1976, Relaxo Footwear is the largest manufacturer of footwear in India in terms of volume and the second-largest in terms of revenue. The company produces a wide range of footwear for men, women, and kids. Some of the footwear categories include walking and running shoes, sandals, slippers, formal shoes, slides, flip-flops, school shoes, and casual shoes.

Relaxo Footwear Limited markets the products that it manufactures under seven different brands, namely, Relaxo, Bahamas, Flite, Sparx, Boston, Mary Jane, and Kid’s Fun. With over 350 exclusive brand outlets and a strong presence on all the major e-commerce websites, the company has ensured the widespread availability of its products, making it one of the best footwear stocks to invest in.  

2. Metro Brands Limited

Founded in 1955, Metro Brands Limited was previously known as Metro Shoes. The company produces an extensive range of footwear under its own brand, ‘Metro Shoes’. Additionally, it also carries various other brands, each catering to different styles, in its stores. Some of the brands that Metro offers through its stores include Metro Shoes, Mochi, Walkway, Fit Flop, Crocs, daVinchi, Cheemo, Fila, Proline, Vans, and Biofoot.

One of Metro Brands' key strengths is its focus on the mid-to-premium segment, which has shown resilience even during economic downturns. The company's strong retail strategy has led to the establishment of an extensive network of stores. Metro Brands has a total of 854 stores across 195 cities in India as of June 30, 2024. 

3. Bata India Limited 

A part of Bata Shoe Organisation, Bata India Limited, is one of the best shoe stocks that you can consider investing in. The company started operations in 1931 and went public in 1973 under the name Bata India Limited. Bata's product range spans across various categories, including casual, formal, sports, and fashion footwear for men, women, and children. 

The company’s strength lies in its strong brand recall, extensive retail network, and a diverse product portfolio that caters to all segments of the market. In fact, Bata is currently India’s largest footwear retailer, with over 1,375 stores across various cities in the country. In recent years, the company has been strongly focusing on reinventing its image to appeal to younger consumers while maintaining its core values of quality and affordability. 

4. Sreeleathers Limited

With more than three decades of experience, Sreeleathers Limited is among the most established footwear companies in the stock market. Based out of Kolkata, the company manufactures shoes, sandals, and chappals for men, women, and kids. 

In addition to footwear, Sreeleathers also manufactures an extensive range of accessories like trolley bags, belts, wallets, bags, and leather garments, among others. Furthermore, the company recently introduced a washable range of footwear as well. 

One of Sreeleathers' key strengths is its vertically integrated business model. The company manages the entire value chain, from leather procurement and manufacturing to retail distribution. This approach allows for better quality control and cost management, contributing to the company's competitive pricing strategy. 

5. Khadim India Limited 

Another footwear brand from Kolkata, Khadim India Limited, is among the leading footwear stocks in the country. Founded in the 1960s, the company has evolved from a small shoe store to a national brand with a diverse product portfolio.

The company's product range includes casual and formal shoes, as well as sports footwear. Additionally, it also manufactures accessories for men, women, and children. Khadim has also developed several in-house brands to cater to different market segments and price points. 

Currently, the company has a total of 846 retail stores in as many as 23 states and one union territory in India. In terms of distributors, the company has a strong network, comprising 544 distributors. 

Conclusion

The Indian footwear industry is primarily driven by factors such as rising disposable incomes, urbanisation, and changing fashion trends. Investing in robust footwear companies in the stock market could be a good way to diversify your portfolio. However, it is always advisable to conduct thorough research before investing. 

The Research 360 platform, powered by Motilal Oswal, can help you in this regard. The platform has several tools and features dedicated to stock and sector analysis. Using these tools, you can easily identify good-quality footwear stocks to invest in.