20. LIBERTY SHOES : CMP 138.35
21.NITCO :CMP 14.73
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
its retail arm Liberty Retail Revolution merged 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 138.35
which is currently trading @ Rs.14.73
Delay happened in the implementation of CDR ( Corporate Debt Restructuring )
package was beyond my
expectations.After long waiting ,now
there is signs of positive developments in the company.Recently promoters
subscribed 22099206 equity shares on a preferential basis @ Rs.25.20 against
the current market price of Rs.14 . This will bring an additional funding of
Rs.55 Cr to the company by the promoters.( Announcement Link HERE) .Still I
have faith in this company and I believe
they can come back to the old good times sooner or later.
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