Footwear stocks jogging ahead

Relaxo Footwear rose over 11% today to Rs.632.55, just a tad shy of its 52-week high of Rs.634.40. Liberty Shoes briefly breached the 5% UC at Rs.263.70; Bata India rose over 3.5% to Rs.794; newly listed Khadim India too rose 3% at Rs.711; Mirza International rose almost 5.5% to Rs.194.55; Superhouse rose 12% to Rs.206.40 and Sreeleathers rose 8.5% to Rs.193.

All these footwear and leather stocks are up today on expectations of an incentive in the offing.

The stocks have moved in unconfirmed news that the Union Cabinet is expected to announce, any time soon, a Rs.2600 crore incentive package for the sector. This would be in a bid to mainly boost exports and help create more jobs.

Data shows that Rs 1 crore investment in the sector results in creation of jobs for about 250 people. Currently, about 30 lakh people are directly employed in the leather/footwear industry.