Liberty Shoes Ltd

Introduction

Liberty shoes limited is a company of manufacturer and retailer founded in 1954, in Karnal, Haryana. It has over 60 years of experience. It has a wide range of female, male, children, including sports, formal, casual, shoes and accessories. 

Company Overview

The company has over 60 years of legacy. The company is known for producing leather and non-leather footwear for men, women, and children. Liberty shoes limited operates under a vertically integrated model that involves manufacturing, brand building, and multi-channel distribution. 

Promoter and founder Introduction

The company was founded by P.D. Gupta, R.K. Bansal, D.P. Gupta. The initial company name was Paal Boot House before evolving into the Liberty group. 

The current promoter is adish kumar gupta. 

The company is implementing a "bold and deliberate reset" of its business model to include future-ready technologies and AI in its retail operations.

Financial Statement Analysis

Income statement 

Balance sheet

Key Ratios

Key Interpretation and Insights

Strength 

Liberty has strong, state-of-the-art "Humantech Centers" and manufacturing capabilities. They have successfully built a robust OEM (Original Equipment Manufacturer) vertical, producing footwear for leading brands like Zudio, First Cry, Metro, and HRX.

Weakness

The company has experienced declining net cash flow and decreasing profits for three consecutive quarters.

Risk factor 

While operating cash flow is positive, the overall cash flow is weak, raising concerns about working capital management.

Future outlook

The company is focusing on the operational cost and cash flow statement in order to improve profitability and revenue. 

Conclusion 

A strong, established brand with high promoter holding. The company has seen poor sales growth over the past five years (0.71% CAGR). However, it has maintained profitability, with net income growing roughly annually.

Sources

Screener 

Simple wall street 

Yahoo finance 

Liberty shoe