Saturday, December 21, 2013

LIBERTY SHOES - REPEAT




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 This stock once recommended @ Rs.95 .( Old report HERE) .Recommending it again @ CMP of Rs.112 due to company's recent initiatives and improving financial performance.When I recommended this stock last time it was in 'T' group but now it excluded from 'T' group and trading normally.I expect Liberty Shoes  will be a stock to watch out in 2014 and will turn out  as an  out performer from the mid/small cap space in the coming year.
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In last few years ,even in India ,we have seen few fantastic turnarounds from the verge of collapse to great success.Eicher Motors and Bata India are best examples for  such a  rise as phoenix from the ashes.From a low of Rs.63 reported in 2003 ,share price of Eicher Motors galloped to Rs.5000 in just 10 years.In case of Bata India ,  stock moved from Rs.26 to Rs.1085 during this same period.If we dig deep ,there is some common factors in many of such companies which turned around dramatically .’ Brand ‘  is one important factor in many such cases. Strategic marketing and technical collaborations , sincere efforts of management with hard work and dedication are the other key points present in such cases.Considering many of such factors , Liberty Shoes is currently at a situation where Bata was 5 or 6  years ago.Incidentally both these companies are in the same line of business too.Liberty is one among the largest 5 producers of leather shoes in the world with a production capacity of 50000 pairs per day.Company selling its products through a  marketing network comprising of 150 distributors, 400 exclusive showrooms and more than 6000 multi brand stores. In addition to this ,company having strong presence in all major  online stores.Liberty’s major brands includes Force-10 ,Fortune,Gliders,Coolers,Senorita,TipTop..etc.

                                                                                            What is interesting at this point is – Promoters are again looking the business seriously and taking every efforts to bring the company into the right track.Company decided to appoint external agencies for in- depth study of the existing operations of the Company .Recently company introduce a host of new attractive models and expanding presence into new geographies.In an effort to increase margins company planning to rationalise its sourcing of raw materials. Presence of some private companies under the same management may be a reason for conflict of Interest .Recently management hinted their plan to consolidate the business under the listed entity in an efforts for value creation.Recently they decided to merge  retail arm Liberty Retail Revolution  with the company which is planning to add 100 new stores every year .At present RRL running more than 400 show rooms .It seems all the efforts of management started to show positive results.In the latest September quarter ,company reported a 50 % growth in sales and sharp increase in net profits from just Rs 8 lakhs to  Rs.3 Cr .

                                                               Entry of some well known private investors like Dolly Khanna (who spotted multibaggers like Hawkinks,Cera Sanitary,Amara Raja Battery,Relaxo Foot ware ..etc at attractive price levels) in Libery Shoes is another point to note along with the positive changes happening in the company.Dolly Khanna entered in the more than 1 % share holder’s list in latest September quarter.I believe -with a very good brand ,large marketing and manufacturing facilities and changing attitude of promoters with aggressive growth plans – this branded play will turn as a wealth creator in the years to come.Stock listed in BSE and NSE.Reiterating  strong BUY @ CMP Rs.112

Link to Company's recently renovated website HERE

Link to latest Interview with MD. HERE

Disc: I  have vested interest in LSL


77 comments :

  1. Dear sir what about kirloskar industries

    ReplyDelete
    Replies
    1. It is only an investment company at present ,not tracking it

      Delete
  2. Thank u sir for wonderdul and upcoming bagger in coming years. Keep it up. Lots of blessings and good wishes are with u of all the investors.
    Thanks & Rgds,
    Nirav S. Karia

    ReplyDelete
  3. Sir your views on Kwality Ltd Plz ..

    ReplyDelete
  4. Thanks for good recommendations all the year. Happy New Year value pick sir in advance.

    ReplyDelete
  5. Dear sir,
    i have been reading your blog for the past 6 months. It is really worth reading blog for every investor. My thousands of sincere thanks to you.
    I would like to ask you one question.I read economics related news paper, i read about current affairs in the business, But i am not able to analyse the way you are analysing a business or company. Please tell me how do you approach a company, or How do you start the analysis. Thanks in advance

    Mail:rajbiluve@gmail.com
    Regards,
    chetan

    ReplyDelete
    Replies
    1. Before looking into any company ,look around and try to find out some industries with potential.

      Delete
  6. Thanks for great recommandations. Sir what is your view on rolta india ltd. Even promotors are also incresing stake...

    ReplyDelete
    Replies
    1. Not a preferable pick from IT sector - for me.

      Delete
  7. VP ji - there seems to be labour and wage issue, for which the promoter is sentenced to 6 months in prison. Charges are that, workers have been forced to quit cos of wages not being paid. Promoters might appeal the sentence. But would this not be a blot ?

    ReplyDelete
    Replies
    1. Labour related issues are common in any labour intensive industry.Company clarification in this matter below

      http://www.bseindia.com/xml-data/corpfiling/AttachHis/Liberty_Shoes_Ltd_211013.pdf

      Delete
  8. Dear Sir,
    Kindly express your views on NTPC. Can I enter NTPC at this moment.

    ReplyDelete
    Replies
    1. Generally not tracking Govt owned cos.

      Delete
  9. dear sir what is your call on BAJAJ HIND @14 RS ,need your coverage again on sugar sector

    ReplyDelete
    Replies
    1. Not expecting any favorable developments for sugar cos in election year.

      Delete
  10. Dear sir happy cristmas in advance what is your valuebul current view on

    UFLEX LTD

    its a packaging company its very attracting business & expansion wise low pe stock but high debt & Interest cost I have vested interest in uflex please comment on this

    ReplyDelete
  11. Dear VP,

    Once again thanking you for the remarkable job you are doing for the investing community.

    Regarding Lberty - CEO of the company is talking of achieving a target of 500 crore by FY 2014, ie current financial year.Till half of the year they only clocked a 200 cr roughly,so next two quarters they must do 150 cr each...Once they scale up they should be able to make it to 5 % NPM, that's is a reasonable margin for this kind of business. What are the possibilities of happenings of these things.

    Your comments please sir.

    Thanks again !!

    HAPPY CHRISTMAS AND HAPPY NEW YEAR IN ADVANCE TO U AND UR FAMILY .....HAVE GREAT YEAR AHEAD.

    regards,
    SHANID V H

    ReplyDelete
  12. Sir,
    I asked about KRBL and you ignored it, why? Please suggest.

    Thanks for doiing the needful.

    ReplyDelete
    Replies
    1. One of the preferred pick from Rice exporting sector.

      Delete
  13. sir one more point i want to add Mr.vijay kishanlal kedia bought 90000 units on yesterday (this fellow as u know on off the biggest invstor in atul auto and aegis logistics once upon a time ) i am thinking that this will surely become a multibagger like atul auto
    thank you

    ReplyDelete
  14. Hello valuepick
    Do you expect epc ind and advanta to improve performance in near future.?.Also how long do you think Wockhardt will take to resolve its issues?..Are they on the right track

    ReplyDelete
    Replies
    1. Positive on both stocks in long term ,nothing to comment about near term.Wockhardt may take 1-1.5 years to completely settle issues related with Waluj and Chikalthana.

      Delete
  15. Hello Vpji,

    Thanks a lot for all your recos! I have bought Liberty shoes, Marksans Pharma n Balaji Amines after reading ur posts. Making a good profit. Thanks a lot.

    Can you please give 4-5 buy at CMP suggestions please? I have to invest arnd 1 lac for long term

    ReplyDelete
    Replies
    1. Better to invest when there is opportunities in market rather than money is in our pocket.

      Delete
    2. Excellent reply I agree to that! Thanks VPji.
      But can you give stocks that I could watch out for?

      Delete
  16. sir your view on relaxo foot wear,kkcl,thomas cook,ashiana housing plese
    thank you

    ReplyDelete
    Replies
    1. Positive on Thomas cook ,not tracking the rest

      Delete
  17. Dear VP,
    Liberty shoes has never paid dividend since 2006. Is the management investor friendly?

    ReplyDelete
    Replies
    1. I am betting on the future of the company ,not on the past.

      Even in the past Liberty declared uninterrupted dividend till 2005 ,in 2005 company declared 110 % dividend and 1:1 bonus. There was low profit thereafter and they skipped dividend and I don't think non distribution of dividend during tough time alone is a reason to worry.

      Delete
  18. Please suggest few stocks with relatively low risk - to build a portfolio

    ReplyDelete
    Replies
    1. Mid-small-micro cap stocks always high risk high profit cases.If you are looking low risk stocks better to look into large cap blue chips .I am not tracking much stocks from that category.

      Delete
  19. Dear sir, do you have any long term view on pfizer .Is it a good buy at current levels .Also wyeth is being merged with pfizer?

    ReplyDelete
  20. Dear VP Sir, Whats your view on the long term prospects of Godrej Properties Ltd ? Which one is your preferred stock in Construction - Real Estate Sector ?
    Thanks

    ReplyDelete
    Replies
    1. Not tracking much cos from this sector.Go with low debt one's

      Delete
  21. Sir, Your views on Indraprastha gas ltd plzz ?

    ReplyDelete
  22. Dear Sir

    I have been seeking your advice on Suzlon for the past few months. I have found that the promoter share pattern changed last qtr. They are getting new orders in Europe etc. How do you see all these changes? A small reduction in loss can make this scripts wonders it seems. Pls advice. Sulekha Sathyan

    ReplyDelete
    Replies
    1. Dear Friend

      If I comment on every order win of Suzlon and its subsidiary ,it should happen on a daily or weekly basis.Not getting order but executing order is the current issue of Suzlon due to working capital crunch.Anyway worst may be over for the company but not expecting any dramatic recovery in short period. Stock may recover gradually and investors with enough patience may consider it with a 1.5 + years view.

      Delete
  23. Sir, will you please provide your view on Elecon Engineering and Praj Industries Ltd.

    ReplyDelete
    Replies
    1. Elecon is not a bad company but a long wait may need .Not tracking Praj

      Delete
  24. I am following your blog from very recent past. I stuck in to Lanco Infra at Rs.22. Should I hold ? Please provide your valuable view.

    ReplyDelete
  25. VPji

    What is ur suggestion @ Orient Paper & Industries.
    Should we buy it.

    Pl suggest.

    ReplyDelete
  26. Thank you Sir!! Eventhough i put sincere effort to study the script before raising a query; Getting a reply from a genuine person like you increases my confidence. God bless you and family for this wonderful piece of work which I have not seen anywhere so far.Sulekha

    ReplyDelete
    Replies
    1. Thanks for your kind words.Try to generate own conviction with deep study about any company before investing which will increase our confidence level even during tough times in the market.

      Delete
  27. Dear sir,
    Thanks for your valuable advice, sir you had spotted accelaye kale, persistent systems, which has already become a multibagger stocks- can you please suggest one IT stock which we can buy at current CMP.

    ReplyDelete
    Replies
    1. Since many small IT companies are working only in paper one should pay more care while selecting mid/small cap it cos. In recent past recommended Blue Star Info.

      Delete
  28. Sir, what do you think about Omkar Speciality Chemicals?

    ReplyDelete
  29. After a sharp hike in Dewan Housing Finance , how do you evaluate this stock from now on.. Can partial profit be booked here?

    ReplyDelete
    Replies
    1. Dewan Housing recommended @ Rs.160 last moth currently trading around RS.225.HOLD it.

      Delete
    2. Thanks for reply..

      Delete
  30. Hi,

    I have found your website on 13th Dec, through Google Search Engine. I am investing my major portion of money in Mutual Funds and Small funds in Equity Shares for last 5 years. I have taken the various Tips giving companies which includes many well known companies. They always promise to give Good Returns but nothing such things are done.

    After reading blog entries, I have invested in the recommended. I have invested small amount to check the stocks picks from your 2013 posts from Jan to Dec, and invested as below:

    ADOR WELDING LTD 5 S Buy @ 128.25 131.87 [After taxs]
    ASHAPURA 25 S Buy @ 60.2 61.78 [ - do - ]
    MARKSANS 100 S Buy @ 13.3 13.68 [ -do - ]

    Total Investment about 3,550 and Present Valuation is 3950 giving about 10% of return.

    Now, I want to invest around 1.5 lakh on your recommendations. Kindly let me know in which companies, would I invest. As some already hit 52 week high of your recommendations. I can hold the shares with the view of 3-5 years. Currently invested in Suzloan about 50,000 @ 9.5 and Lanco 70000 @ 7 AMARAJ Batt 10000 @ 315. Kindly also let me know there future prospective for next 3-5 years to hold or exit or more invest.

    Thanks,

    Vineet


    ReplyDelete
  31. Sir,

    Your reco Biocon has gone up.Can you pls let me know, whether it is a Hold or Sell

    Regards,
    Raj

    ReplyDelete
  32. Please share your views on " Motherson Sumi " The stock was doing well and declared 1:2 bonus too , I have brought 250 shares before ex bonus date and would like to hold it for a year from now , can you please suggest if it can be good to add on more shares on dips ?

    Thanks and Regards ,
    Akash

    ReplyDelete
    Replies
    1. One of the good stocks from Auto Ancll.sector .BUY and HOLD for long term

      Delete
  33. Sir,
    i have been closely following your picks and it was of great help .thank you.
    Sir, any view on accelya kale.can you brief me about that company. I am just confused that is it a currency play or currency move is not so important.
    waiting for you reply
    thank you

    ReplyDelete
    Replies
    1. Stock recommended @ Rs.120 ,Nothing to add @ current price of Rs.615 .It is not practical to brief any company to any one personally .Search the blog for old posts.

      Delete
  34. Your recommendations are great.
    Invested on your picks Acrysil and Liberty Shoes. Both already gained more than 10% in two days.... Thanks a lot....

    ReplyDelete
  35. Sir,
    Your views regarding "Kirloskar Pneumatic".

    ReplyDelete
    Replies
    1. Not a bad company ,one need to wait till a revival in sector.

      Delete
  36. sir please reply me should i buy orient bell at current price?

    ReplyDelete
    Replies
    1. No change i previous opinion.Enter if you have enough patience .

      Delete
  37. sir I am a small invester from west bengal I read ur recommendations heartilly but i cant buy them as they get up 40% next two session . can I buy liberty shoe at current price?

    ReplyDelete
    Replies
    1. Entry price in a stock is very crucial .Stock was available well below Rs.120 for hours on Monday morning.

      Delete
  38. I am asking again your advice on Biocon? Is it a hold or buy. Already I am making gains

    ReplyDelete
  39. Thanks for the wonderful tips and insight

    ReplyDelete
  40. Res Sir.

    I shall feel highly obliged if you could advise on prospects of Jai corp

    Regards

    ReplyDelete

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