Shares of Liberty Shoes Ltd. gained as much as 12 percent on Monday, a day after the footwear maker hit the 20 percent upper circuit following an investment by value investor Porinju Veliyath.
The stock has risen 48 percent in the last 10 trading sessions, ahead of Bata India Ltd.’s 6 percent and Relaxo Footwear Ltd.’s 2.7 percent gains.
That’s made it costlier than peers. Liberty Shoes is trading at 73 times its earnings, higher than Bata India’s 58 times and Relaxo Footwear’s 51 times.
Will the rally sustain?