Market experts see 25 per cent upside in Liberty Shoes, which is currently quoting at Rs 100 levels, after touching a 52-week high of Rs 119 on January21. Average volumes over the past seven trading sessions at 2.28 lakh shares are 78 per cent higher than 14-day average volumes.
The company reported fiat performance in the quarter ending December 2009 as sales slipped 5 per cent to Rs 67 crore, while net profit was flat at Rs 3 crore. The performance for the nine months ending December 2009 was slightly better. Though net sales gained 9 per cent to Rs 189 crore, net profit was up 46 per cent to Rs 7 crore. Despite the tepid performance so far, the company still looks grossly undervalued with market cap to annualised nine monthly sales of 0.74 times, say analysts. Also, technically, the stock, which is up down 3 per cent in the last fortnight, holds good. The stock has already crossed the 200-week moving average with good volumes. The monthly moving average convergence! divergence (MACD) has inched up in the positive territory and is moving upwards, indicating positive momentum, according to a report from Anagram Stock Broking.
Related posts: