The footwear sector presents significant investment opportunities through notable listings like Metro Brands Limited, Campus Activewear Limited, and Khadim India Limited, offering exposure to India’s growing retail market.
Content:
- Overview of the Footwear IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Footwear Sector IPOs
- Disadvantages of Investing in Footwear Sector IPOs
- Role of Footwear Industry in the economy
- How to invest in Footwear IPOs?
- Future outlook of Footwear IPOs in India
- Footwear IPOs in India – FAQ
Overview of the Footwear IPOs in India
The footwear sector features prominent listings including Metro Brands Limited and Campus Activewear Limited, demonstrating robust potential in retail expansion and brand development nationwide.
These offerings enable investors to participate in sector growth while benefiting from increasing consumer spending, fashion consciousness, and expanding retail presence across urban and rural markets.
IPO Fundamental Analysis
Metro Brands Limited
Metro Brands Limited reported consistent growth in FY24 compared to FY23, reflecting strong revenue performance, improved profitability, and enhanced financial positioning. The company continues to demonstrate operational efficiency and shareholder returns, supported by robust equity and reserves.
Revenue Trend: Revenue increased to ₹2,357 crores in FY24 from ₹2,127 crores in FY23, marking a 10.82% growth. Expenses also rose to ₹1,657 crores compared to ₹1,448 crores in FY23.
Equity and Liabilities: Equity capital rose slightly to ₹135.95 crores in FY24 from ₹135.87 crores in FY23. Total liabilities increased to ₹3,353 crores in FY24 compared to ₹2,927 crores in FY23.
Profitability: Operating profit grew to ₹699.57 crores in FY24 from ₹678.74 crores in FY23. However, OPM slightly declined to 28.82% from 31.11% due to higher expenses.
Earnings per Share (EPS): EPS improved to ₹15.17 in FY24 from ₹13.30 in FY23, indicating enhanced earnings capacity and improved returns for shareholders.
Return on Net Worth (RoNW): Net profit rose to ₹415.47 crores in FY24 from ₹365.39 crores in FY23, reflecting better profitability and returns on reserves and equity.
Financial Position: Total assets increased to ₹3,353 crores in FY24 from ₹2,927 crores in FY23. Non-current assets rose to ₹1,661 crores, while contingent liabilities reduced to ₹10.65 crores from ₹20.32 crores.
Campus Activewear Limited
Campus Activewear Limited reported its financial performance for FY24 compared to FY23, showing mixed trends in revenue and profitability while maintaining a robust financial position. The company demonstrated consistent operational efficiency and continued focus on asset growth.
Revenue Trend: Sales declined slightly to ₹1,448 crores in FY24 from ₹1,484 crores in FY23. Expenses marginally increased to ₹1,237 crores from ₹1,231 crores, reflecting tight cost management.
Equity and Liabilities: Equity capital grew to ₹152.63 crores in FY24 from ₹152.34 crores in FY23. Total liabilities decreased to ₹1,097 crores in FY24 compared to ₹1,176 crores in FY23.
Profitability: Operating profit fell to ₹210.80 crores in FY24 from ₹253.57 crores in FY23. OPM also reduced to 14.51% in FY24 from 17.05%, indicating a decrease in operational margins.
Earnings per Share (EPS): EPS decreased to ₹2.93 in FY24 compared to ₹3.84 in FY23, primarily due to a decline in net profit to ₹89.44 crores from ₹117.12 crores.
Return on Net Worth (RoNW): RoNW was impacted by a drop in reserves to ₹499.03 crores in FY24 from ₹394.32 crores, reflecting moderate profitability amidst challenging market conditions.
Financial Position: Total assets reduced to ₹1,097 crores in FY24 from ₹1,176 crores in FY23. Current assets stood at ₹663.24 crores, and contingent liabilities increased to ₹61.84 crores from ₹25.63 crores.
Khadim India Limited
Khadim India Limited reported a mixed financial performance in FY24 compared to FY23, with slight declines in revenue and profitability metrics. The company’s balance sheet reflects steady equity and asset positions, maintaining resilience amidst challenging market conditions.
Revenue Trend: Revenue declined to ₹614.90 crores in FY24 from ₹660.26 crores in FY23, marking a decrease of 6.87%. Expenses also decreased to ₹543.96 crores from ₹587.77 crores during the same period.
Equity and Liabilities: Equity capital increased slightly to ₹18.13 crores in FY24 from ₹17.97 crores in FY23. Total liabilities remained stable at ₹731.52 crores compared to ₹735.03 crores in the previous year.
Profitability: Operating profit dipped marginally to ₹70.94 crores in FY24 from ₹72.49 crores in FY23. OPM improved to 11.37% from 10.70%, reflecting slightly better cost efficiency.
Earnings per Share (EPS): EPS dropped to ₹3.46 in FY24 compared to ₹9.73 in FY23, reflecting reduced profitability and earnings available to shareholders.
Return on Net Worth (RoNW): With reserves increasing to ₹219.24 crores in FY24 from ₹207.25 crores, RoNW reflected stable equity utilization despite reduced net profit at ₹6.28 crores.
Financial Position: Total assets remained consistent at ₹731.52 crores in FY24, driven by ₹287.95 crores in non-current assets and ₹443.57 crores in current assets. Contingent liabilities fell significantly to ₹1.68 crores from ₹11.59 crores.
IPO Financial Analysis
Metro Brands Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 2,357 | 2,127 | 1,343 |
| Expenses | 1,657 | 1,448 | 934 |
| Operating Profit | 700 | 679 | 409 |
| OPM % | 28.82 | 31.11 | 29.19 |
| Other Income | 70.82 | 54.41 | 58.64 |
| EBITDA | 770 | 733 | 468 |
| Interest | 78.89 | 63.06 | 50 |
| Depreciation | ₹ 229 | ₹ 181 | ₹ 134 |
| Profit Before Tax | 462 | 489 | 283 |
| Tax % | 10.8 | 25.71 | 24.79 |
| Net Profit | 415 | 365.39 | 214 |
| EPS | 15.17 | 13.3 | 7.79 |
| Dividend Payout % | 32.96 | 30 | 29 |
Campus Activewear Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,448 | 1,484 | 1,194 |
| Expenses | 1,237 | 1,231 | 952 |
| Operating Profit | 211 | 254 | 242 |
| OPM % | 14.51 | 17.05 | 20.22 |
| Other Income | 4.54 | 2.75 | 2.4 |
| EBITDA | 215 | 256 | 244 |
| Interest | 23.20 | 28.68 | 20 |
| Depreciation | ₹ 72 | ₹ 71 | ₹ 53 |
| Profit Before Tax | 120 | 157 | 172 |
| Tax % | 25.49 | 25.21 | 36.79 |
| Net Profit | 89 | 117.12 | 109 |
| EPS | 2.93 | 3.84 | 3.57 |
Khadim India Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 615 | 660 | 591 |
| Expenses | 544 | 588 | 543 |
| Operating Profit | 71 | 72 | 48 |
| OPM % | 11.37 | 10.7 | 7.87 |
| Other Income | 9.02 | 17.48 | 16.28 |
| EBITDA | 80 | 90 | 64 |
| Interest | 31.30 | 29.06 | 23 |
| Depreciation | ₹ 40 | ₹ 38 | ₹ 34 |
| Profit Before Tax | 8 | 23 | 8 |
| Tax % | 23.62 | 22.46 | 16.95 |
| Net Profit | 6 | 17.48 | 6 |
| EPS | 3.46 | 9.73 | 3.58 |
About the Company
Metro Brands Limited
Metro Brands Limited, established in 1955 and headquartered in Mumbai, is a leading footwear retailer in India. It operates over 598 stores across 136 cities, offering branded footwear for men, women, and children, catering to diverse customer preferences and occasions.
The company’s portfolio includes in-house labels like Metro Shoes, Mochi, and Walkway, alongside third-party brands. With a focus on quality and style, Metro Brands has also expanded its presence through online channels, reinforcing its position in the retail market.
Campus Activewear Limited
Campus Activewear Limited, founded in 2005 and based in Gurugram, is a prominent Indian sports and athleisure footwear brand. It manufactures and distributes running shoes, casual shoes, sandals, and other footwear, catering to men, women, and children.
With a focus on affordability and trendy designs, Campus Activewear reaches customers through multi-brand outlets, exclusive stores, and e-commerce platforms. The company is a preferred choice for Indian consumers seeking high-quality athleisure footwear.
Khadim India Limited
Khadim India Limited, incorporated in 1981 and headquartered in Kolkata, is a leading footwear retailer in India. It operates over 700 retail outlets nationwide, offering affordable footwear for men, women, and children.
Khadim’s product range includes formal shoes, casual shoes, sports shoes, and sandals. Its emphasis on value-for-money products and widespread retail presence has solidified its position as a key player in the Indian footwear market.
Advantages of Investing in Footwear Sector IPOs
The main advantages of Investing in Footwear Sector IPOs include exposure to India’s growing retail market, brand value creation, organized sector expansion, and strategic market positioning through established companies like Metro Brands Limited.
1. Consumer Demand: The sector benefits from rising disposable incomes, fashion awareness, lifestyle changes, urbanization trends, and increasing preference for branded footwear across demographics.
2. Retail Expansion: Established retail networks, online presence, brand recognition, and efficient distribution channels enable market penetration and steady revenue growth.
3. Brand Value: Strong brand portfolios, design innovations, quality positioning, and market segmentation strategies enhance competitive advantage and pricing power.
Disadvantages of Investing in Footwear Sector IPOs
The main disadvantages of Investing in Footwear Sector IPOs include raw material cost volatility, fashion trend risks, retail space expenses, and competitive pressures, as demonstrated in the performance metrics of companies like Campus Activewear Limited.
1. Input Cost Variations: Companies face significant impacts from leather prices, synthetic material costs, manufacturing expenses, import duties, and supply chain disruptions affecting production margins.
2. Fashion Risk: Rapidly changing consumer preferences, seasonal variations, inventory management challenges, and fashion trend volatility require continuous product innovation and market adaptation.
3. Competition Intensity: Market rivalry from established brands, international players, unorganized sectors, and online platforms requires substantial investment in marketing and retail presence.
Role of Footwear Industry in the economy
The footwear sector drives economic growth through extensive employment generation, retail sector development, export earnings, and support to the leather industry while promoting manufacturing excellence nationwide.
The industry creates entrepreneurship opportunities, enhances skill development, promotes design innovation, strengthens retail infrastructure, and contributes significantly to India’s manufacturing capabilities.
How to invest in Footwear IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements, and thoroughly research upcoming footwear sector IPOs through detailed fundamental analysis.
Monitor SEBI announcements, company prospectuses, market conditions, and sector trends, and maintain required funds for a timely subscription while following systematic investment approaches.
Future outlook of Footwear IPOs in India
The footwear sector demonstrates promising growth potential with increasing consumer spending, retail expansion opportunities, brand development initiatives, and growing fashion consciousness.
Industry modernization, manufacturing technology enhancement, and market expansion plans indicate positive prospects for future IPOs, supported by evolving consumer preferences nationwide.
Footwear IPOs in India – FAQ
Footwear sector IPOs represent the first public offerings from companies specializing in footwear manufacturing, retail, and brand development, like Metro Brands Limited and Campus Activewear Limited, enabling market expansion.
Major listings include Metro Brands Limited, Campus Activewear Limited, and Khadim India Limited, offering investors exposure to retail networks, brand portfolios, and manufacturing capabilities nationwide.
Footwear sector IPOs provide strategic investment opportunities in India’s retail growth story, with companies like Metro Brands Limited demonstrating potential through brand strength and retail expansion.
Metro Brands Limited marks a significant milestone as the largest footwear sector public offering, showcasing strong market acceptance, and retail presence, and setting industry valuation benchmarks.
Begin by opening a trading account through Alice Blue, completing comprehensive KYC documentation, analyzing retail market trends, studying company fundamentals, and maintaining adequate subscription funds.
Footwear sector IPOs offer substantial growth potential through retail expansion, brand development, manufacturing capabilities, increasing consumer spending, and evolving fashion preferences nationwide.
Yes, footwear IPOs can be profitable for investors, but the success often depends on the company’s growth potential, brand strength, and market conditions. Investors should thoroughly research the company’s financials, competitive landscape, and growth strategy before investing in a footwear IPO.
Market observers anticipate new footwear sector IPOs, following successful listings like Campus Activewear Limited, driven by retail expansion opportunities and brand development initiatives.
Access comprehensive research through Alice Blue’s dedicated research portal, covering retail metrics, brand analysis, market penetration strategies, competition landscape, and growth opportunities.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
