List of Best Footwear Stocks

What are Footwear Stocks?

Footwear stocks refer to the shares of companies involved in the design, production, and retail of footwear. Investors may find footwear stocks appealing due to the growing demand for quality footwear, especially as the market sees a shift towards premiumisation.

Overview of the Footwear Industry

The footwear industry in India stands as the second largest globally in terms of production, highlighting the country’s substantial role in the sector. Valued at approximately ₹123.5k cr. in FY 2024, the Indian footwear market is projected to expand rapidly, with expectations of early double-digit growth reaching around ₹191k cr. by FY 2028. This robust growth trajectory is fueled by several factors, like rising disposable incomes, which enable higher spending on quality and branded products. Urbanisation is another critical driver, as expanding cities and lifestyle changes contribute to higher demand for varied footwear options across segments.

Many footwear companies in the stock market have shown resilience through economic shifts, adapting by enhancing product lines and expanding digital outreach. For investors, understanding the market share of footwear companies in India is essential to make informed decisions.

How to invest in Footwear Stocks?

Here is how you can invest in the best footwear stocks:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top footwear stocks in India using Tickertape Stocks Screener. The screener offers over 200 built-in filters, allowing investors to select parameters and generate a list of footwear stocks.
3. Place a ‘Buy’ Order on the top footwear stocks that align with your investment thesis.

Implications of the Union Budget 2025-26 on the Footwear Industry

The Union Budget 2025–26 signals a focused push to strengthen India’s footwear industry through measures aimed at boosting manufacturing, enhancing exports, and supporting MSMEs.

• Sitharaman announced on 1st February 2025 during the Budget speech for 2025-26, that the government will launch a focused product scheme for labour-intensive fields like the footwear and leather sectors in India.
• The Budget’s emphasis on skill training and upskilling programs supports the footwear industry in addressing labour gaps and improving product design.

How to Identify Footwear Stocks?

• Revenue Growth: You can look for footwear companies in stock market demonstrating consistent revenue growth over the past quarters or years.
• Profit Margins: Assess the company’s profit margins to understand its operational efficiency compared to competitors.
• Market Share: A footwear company stock with a growing market share indicates solid brand strength and consumer loyalty.
• Debt Levels: High debt can be risky. Ensure the top 10 footwear companies in India that you choose have manageable levels of debt to equity.
• Innovation and Adaptability: The top 10 footwear companies in India that innovate and adapt to changing consumer preferences will likely outperform in the long run.

Advantages of Investing in Footwear Stocks

• Strong Consumer Demand: Footwear is a necessity, leading to continuous demand and stable revenue streams for footwear manufacturers.
• Growth Potential: The sector is poised for further growth as urbanisation and disposable income increase.
• Defensive Qualities: Footwear stocks in India can be less volatile compared to other consumer discretionary sectors, providing a buffer during economic downturns.

Risks Associated with Investing in Footwear Stocks

• Economic Downturns: A slowdown can reduce consumer spending, affecting luxury brand stocks India, including top footwear companies in India.
• Competition: The industry is competitive, with numerous domestic and international brands vying for market share.
• Raw Material Costs: Price volatility in raw materials such as leather and rubber can impact the profit margins of footwear manufacturers.
• Regulatory Challenges: Changes in import/export tariffs and labour laws can affect operations and profitability.

Factors to Consider Before Investing in Footwear Stocks

• Global and Domestic Market Trends: Evaluate both global and local market conditions to understand their potential impact on footwear company listed in stock market.
• Company Strategies: Study how the best footwear company in india is positioning itself in the face of challenges like e-commerce growth or shifts toward eco-friendly products.
• Financial Health: Review balance sheets, cash flow statements, and profit and loss accounts to ensure the company has a sound financial foundation.
• Brand Strength and Loyalty: The best footwear brand in india, like Bata and Relaxo, will have an established customer base that can provide stability and continuous revenue.