According to Goldman Sachs’ research study dated March 21, the most significant structural trend is the penetration of sports and leisure (S&A).
The value of India’s branded S&A footwear category is predicted to increase at a 13% CAGR between FY25E and FY45E. India has seen an increase in the penetration of branded footwear due to several factors, including growing income levels, increased brand awareness, and better access to branded footwear. In the meantime, the market share of tiny or unbranded brands has decreased from 85% to 75% over the previous ten years.
Upbeat about their development potential, the brokerage firm started covering Indian footwear makers Metro Brands Ltd. with a “buy” rating and Bata India Ltd. with a “neutral” call.
Metro Brands’ target price of Rs 1,450 was set by Goldman Sachs, suggesting a possible gain of 29 percent from the stock’s March 21 closing price of Rs 1,125.
