Liberty Shoes (LIBERTSHOE) | News Based Sentiment Analysis

• On August 30, 2025, Liberty Shoes Limited announced the availability of its Annual Report for 2024-25 and the Notice for its 39th Annual General Meeting (AGM), scheduled for September 24, 2025. This provides shareholders with a crucial opportunity to assess the company’s financial performance and strategic direction.
• Following a government announcement on September 4, 2025, the GST rate on footwear priced up to ₹2,500 per pair was cut from 12% to 5%. Liberty Shoes’ stock initially jumped 3%, reaching ₹348.40, and later increased by 1.51% on the same day, suggesting positive market reaction.
• However, the initial stock surge was short-lived, with Liberty Shoes slipping 1.69% on September 5, 2025, amidst mixed trading in the footwear sector following the GST revision. This highlights the volatility in market response to the policy change.
• Q1 2025 financial results, reported on September 5, 2025, showed revenue from operations increased by 10.81% year-on-year to ₹172.79 crore (₹17,279.00 lakh). Despite this revenue growth, net profit declined by 28.63% to ₹3.33 crore (₹332.73 lakh), with basic EPS falling from ₹2.74 to ₹1.95.
• Technical analysis, as of September 2, 2025, indicated a shift in Liberty Shoes’ trend from mildly bearish to bearish with moderate strength, based on bearish MACD, moving averages, and KST, despite a bullish weekly RSI.
• Despite the profit decline and high debt concerns, analysts noted an attractive valuation, with the stock priced at ₹337.80 on September 3, 2025, showing a 2.69% increase over the last four days and a 1-week return of 6.61%, but a 26.57% decline over the past year.
• On September 4, 2025, Liberty Shoes Limited was listed under Enhanced Surveillance Measure (ESM) Stage I, a regulatory action that may increase scrutiny of trading activity.
• Shareholding patterns shifted in the June 2025 quarter, with promoter holding decreasing to 58.32% from 58.36% in September 2024, FII/FPI holdings decreasing from 0.73% to 0.39%, and Indian Public holding increasing to 29.59% from 29.42%.

The Investment Story: September was a mixed month for Liberty Shoes, marked by a positive GST rate cut initially boosting the stock, followed by profit declines revealed in Q1 results and a shift to a bearish technical trend. Regulatory action with the ESM listing adds another layer of complexity.

What It Means for Investors: Investors should carefully weigh the potential benefits of the GST cut against the declining profitability and increased regulatory scrutiny. The shifting shareholding patterns and bearish technical indicators suggest caution, while the attractive valuation could present a potential opportunity for long-term investors.

Looking Ahead: The September 24, 2025 AGM will be crucial for understanding management’s response to the Q1 results and the ESM listing. Monitoring the impact of the GST cut on sales and profitability will also be key.

The Bottom Line: Liberty Shoes presents a complex investment case with both potential upsides and significant risks. Investors should closely monitor upcoming events and carefully assess the company’s ability to navigate its current challenges and capitalize on the favorable GST changes.