Why the Big Drop?
Weak demand in mass-market shoes, fierce competition from local players, and slow sales growth at just 3% over five years. Q1 FY26 revenue fell 7% YoY to ₹629 Cr, though profit edged up 10% to ₹49 Cr thanks to better margins. Inflation hit raw materials hard too—think crude-based stuff for slippers. Kinda like when your favorite street chaat guy hikes prices but crowds thin out.
Key Numbers for Retail Investors:
Market cap sits at ₹8,905 Cr. P/E ratio? High at 51, way above peers like Bata (59) or Red Tape (34)—industry average around 40-50. Dividend yield's decent at 0.84%, ROE lowish at 8.3%, ROCE 11%. Debt to equity super healthy at 0.10, cash flow from ops positive ₹406 Cr last year but investing eats it up. Profit growth? Mixed—TTM down 4%, but recent quarter up a bit. Not screaming cheap, but balance sheet feels solid.
Began in 1976 when brothers Mukand Lal Dua and Ramesh Kumar Dua took their dad's small footwear gig in Delhi with ₹10,000. Now, eight plants churn 6 lakh pairs daily. Family still runs it strong.
What They Do?
Mass-market champs in slippers, sandals, sports shoes via brands like Sparx, Bahamas, Flite, Relaxo. Sell through 100,000+ outlets, e-com, exports. Focus on comfy, cheap daily wear for tier-2/3 towns—under ₹500 mostly. Pushing premium now with 250+ new styles for 2026. Market share under 10%, room to grow.
Short-term shaky, but long-haul optimists say ₹1,000-1,400 by end-2026 if demand picks up. 2030? Wild ₹4,000-5,500. By 2035-2040, who knows—maybe double that if they grab share from unorganized guys. But hey, footwear's cyclical; don't bet the farm. These are analyst shots, not guarantees.
