Best Leather Stocks to Buy in India – List of Top 10 Leather Industry Shares of 2022Last Updated Date: May 20, 2022
There’s what need to know about the Best Leather Stocks to buy. As you know, Leather is a product that has been in the market for centuries.
Be it apparel or footwear, seat covers, or bags, leather can be used anywhere. It might not be wrong to say that leather is the most versatile product out there. It has diverse use cases.
Therefore, the leather market is evergreen. As a result, we can see leather stocks constantly rising over a while. With the help of this blog, we try to gain insights into the leather sector in India.
Along with that, we will also learn about some of the best leather companies in India.
Know About the Leather Sector in India
Before discussing the various leather stocks to buy, it is important to know more about this industry.
The leather sector in India has been a part of the economy for quite a long time. The history of leather in India goes back to the 19th century.
During that time, Calcutta and Madras were the two states dominating the leather industry in India.
However, with time the production of leather was spread in other states. This led to some of the top leather companies in India.
As of 2022, the leather market in India has grown tremendously, with a total production of more than 3 billion square feet of leather every year.
In 2020-21, India exported leather-made goods worth more than $3.67 billion. This included leather, footwear, accessories, etc. India accounts for more than 13% of total leather production globally.
Best Leather Stocks in India – Top 10 Leather Companies in India
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Now that we have understood the history and size of the leather industry in India, we take a look at the best leather shares in India.
In this part of the blog, we will talk about India’s ten best leather companies in terms of market capitalization. These companies include Bhartiya International, Super Tannery, Amin Tannery, etc.
We will try to understand these companies’ history and the products or services they are known for. Along with the Top 10 companies in the leather sector, we will also look at some other potential Leatherware Shares to Buy.
These companies whose market capitalization is low but have the investment potential.
We also talk about the company’s financials for investment purposes, including some of the most commonly used ratios such as the P/E ratio, EPS ratio, etc.
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Somplast Leather – Leather Shares to Buy
Somplast leather is the biggest leather manufacturing company in the country, with a market capitalization of more than 750.00 crores.
The Somplast leather is a subsidiary of another parent company listed in the foreign markets. In India, it was incorporated in 1983 and has been a leading player in the market ever since.
The company has dealings in a vast and diversified variety of leather products. Some of these products include leather handbags, leather-made saddlery, and harnesses.
Not only does the company manufacture leather products, but it also deals in the tanning and dressing of leather that can be used as a raw material for manufacturing other products.
Even though Somplast leather is a leading player in the leather industry in India. Investors looking to invest in Somplast leather will have to face a slight disappointment because investment in the company as leather shares to buy is not possible.
The last recorded share price of the company was in the year 2003. Since then, the company has been delisted from both exchanges. Therefore, trading and investing in the company is not possible.
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Bhartiya International Limited – Best Leather Product Stocks in India
Bhartiya International is one of India’s most prominent players in the leather industry. It is known for being the largest manufacturing and export house of leather clothes and accessories.
The company has set its market in India, China, and Italy. The company was founded in the year 1987 as a private limited company named Bhartiya Kalecha Industries Private Limited.
A few years down the line, the company’s name was changed to Bhartiya International Limited in the year 1993. The company was converted from a private limited company to a public limited company in the following year.
In terms of the products offered, the company has a wide variety to cover and caters to a large audience. The company is involved in different sectors.
Not only do they offer leather products, but the company is also involved in development projects, including retail spaces, hotels, etc.
The leather products offered by the company are:
- Leather Outerwear such as Jackets etc.
- Leather Accessories include handbags, belts, wallets, etc.
Why invest in Bhartiya International Limited stocks?
From an investment point of view, the company has a total market capitalization of more than 390.00 crores, making it the second-largest in its sector.
In terms of the company’s annual report, the P/E ratio, i.e., price to earnings ratio, is 30. Whereas the EPS, i.e., earnings per share ratio, is 10.
Therefore, the company’s financials represent a healthy opportunity for investors looking to step into the best leather product stocks in India.
Super Tannery Limited – Top Leather Sector Stocks
Super Tannery Limited, earlier known as Super Tannery India Limited, was started in 1984 with Ehsan Kareen and his family as their promoters.
Before the Kareen family promoted the company, it was a partnership firm that they took over. The company now has various divisions looking over different departments such as leather garments, leather shoes, etc.
In 1993, the company went public and raised funds for the first time. The funds were used for the primary purpose of expansion.
As a result, their capacity went from 2.4 lakh pairs of shoes per annum to 7.2 lakh pairs of shoes per annum. Talking about the products offered by the company, the company operates in various countries by exporting their goods.
It offers products in the US, Canada, Hong Kong, Singapore, and many European countries. Super tannery offers the following products:
- Casual Shoes
- Safety Boots
- Apparels etc.
Why invest in Super Tannery Limited stocks?
Since the company has a wide range of products to offer and operates globally, it becomes an excellent avenue for investment. As of now, the market capitalization of Super Tannery Limited is more than 90.00 crores.
In terms of the financials, it has a P/E ratio of merely 12, making it one of the top leather sector stocks. However, the EPS, i.e., Earnings per share of the company, is just 0.5, but the stock can prove valuable in the long run.
Amin Tannery Limited – Top Leather Companies in India
Amin Tannery is one of the oldest leather manufacturing companies in India. In the year 1946, when the country was on the verge of partition, there was an individual who decided to open a tannery in the city of Kanpur.
The company was started by Choudhry Mohammad Amin and later taken over by his son Choudhry Ehsan Kareem in 1955.
Choudhry Ehsan Kareem ran the company for the next 40 years till his demise in 1995. Presently, Ehsan Kareen’s son and grandson Veqarul Amin and Zaki Amin, respectively.
Together, they manage a leather processing company with a capacity of over 1.5 million sq. feet per month and a shoe manufacturing capacity of 1000 pairs a day.
In terms of the products offered by the company, they deal in 2 departments. The products offered include the following:
- Finished leather fabric for jackets etc
- Leather footwear, including both shoes and boots.
Why invest in Amin Tannery Limited stocks?
Talking about the company’s financial aspect, Amin Tannery has an overall market capitalization of more than 56.00 crores, making it the 4th largest company in the sector.
The P/E ratio of the company is 68, which is a little overvalued. However, the company operates in an ever-growing sector.
Therefore, people looking to invest in the top leather companies in India for long term investment can consider Amin Tannery.
Lakhani India Limited – Top Leatherware Stocks in India
Lakhani India is a footwear manufacturing company set up in Faridabad, Haryana. In the year 1981, the company was established as a private limited company under the name Lakbros Shoe Private Limited.
A few years later, somewhere in 1989, the company was converted into a public limited company and listed on the Bombay Stock Exchange.
In 1995, Lakhani India Limited came up with a public issue to raise 46 crore which helped them increase their production capacity from 30 lakh shoes to 61 lakh shoes per annum.
However, these were non-leather shoes, a part of the funds was used for manufacturing three lakh leather shoes per annum.
If we take a look at the products offered by Lakhani India Limited, we realize they offer a wide variety of footwear.
The company is known for being the largest producer of beach slippers in the country and the second-largest producer of canvas shoes.
A significant part of their products is exported to the UK, Sweden, Italy, France, Germany, etc. Some of the products offered by Lakhani International Limited includes the following:
- Non-leather shoes
- Leather shoes
- Beach Slippers
- Canvas Shoes
Why invest in Lakhani India Limited stocks?
Lakhani India Limited has a market capitalization of more than 46.80 crore rupees in terms of financials. The company has been performing brilliantly over the years and has become the 5th largest in the Top Leatherware Stocks in India.
However, investment in the company is not possible at this moment. This is because the company was delisted from both the stock exchanges a few ago.
Phoenix International Limited – Top 10 Leather Stocks
Another entity making to our top 10 leather stocks is Phoenix International Limited.
The company was established by Ajay Kalsi and D.N. Kalsi in 1987 as a private limited company and converted into a public limited company a year later.
The company has three principal subsidiaries: Phoenix Industries Limited, Park Leather Industries Limited, and Phoenix Cement Limited.
Park leather industries are the subsidiary responsible for producing and manufacturing leather products in India. It is amongst the biggest companies in the leather sector in India.
Presently, the company operates in a wide variety of products and services, including:
- Tanning of leather along with its dressing. This is the production stage where the company prepares leather to be used for their products.
- Manufacturing accessories such as luggage handbags, leather harnesses for multiple uses, leather-made saddles for horses, etc.
Why invest in Phoenix International Limited stocks?
From an investment point of view, the company has a market capitalization of over 44.00 crores giving it a good grip over the sector.
In the previous year, i.e., 2021, the company has given over 100% returns to its investors and doubled in value.
The company’s price-to-earnings ratio is 20, which represents that the company is not overvalued and suitable for investment. The earnings per share during the previous year have been 0.59, which might sound like a bummer.
However, the company can prove to be a good bet for investors in the long run.
AKI India Limited – Best Leather Stocks to Buy
AKI India is another great pick among the best leather stocks to buy. The company was founded back in 1994 as a private limited company.
However, after a couple of years, the company went public. Today, it manufactures and sells various leather products across the Indian markets.
In the year 2008, the company set up its first line of shoe production and later introduced jackets, saddlers, etc., under the name Maplewood.
Presently, the company offers the following products in the Indian markets:
- Leather Bags
- Leather Belts
- The Leather footwear
- Horse Covers etc
Why invest in AKI India Limited stocks?
Since the company’s operations are spread throughout the country, it is a wise investment for those looking to invest in leather shares in India. AKI India has a market capitalization of more than 32.90 crore, making it one of the best leather companies in India.
In 2021, the stock increased by over 183% and nearly tripled in its value giving massive profits to the investors. The financial ratios of the company aren’t that bad either.
AKI India has a price-to-earnings ratio of nearly 32, which is lower than the industry giving it a fair value. The only downside is the Earnings per share ratio at 0.87.
However, the company has shown significant growth over the years. Thus, people willing to invest in the long term and who have the capacity of holding a stock for years can invest in AKI India to enjoy the gains in the long run.
Euro Leder Fashion Limited – Top Leather Stocks to Buy
Another pick for you as the Top Leather Stocks to buy is Euro Leder Fashion. Euro Leder Fashion is a public limited company that deals with producing leather-made jackets and finished leather.
The company was set up in 1992 in Chennai and now operates globally. It has been more than 30 years since its inception, and the Euro leder has created a name for itself.
The company has a yield of more than 2 lakh jackets per year for exporting into countries like the USA, Canada, Australia, and various European countries such as Germany, etc.
However, the company does not sell under its brand when it comes to exports. Instead, they are the suppliers for various known brands and boutiques.
As mentioned earlier, Euro Leder has also been recognized by the Government of India as a star export house for their massive operations in the countries.
Apart from manufacturing, the company makes leather bags, diaries, wallets, etc.
Why invest in Euro Leder Fashion Limited stocks?
The company has a market capitalization of nearly 7.00 crores, making it a medium-sized company. However, for people looking to invest in mid-cap leather companies in India, Euro Leder Fashion can be a good choice.
The company has decent financials and fundamental analysis with a price-to-earnings ratio of nearly 32. Therefore, the company is not overvalued and has potential growth in the long run.
The EPS ratio is a little low at 0.43 due to the low business in the past few years due to covid. In the long run, the company can prove to be a good investment.
Crew BOS Products – Best Leather Companies in India
Crew BOS Products was established in 1988 as a private limited company dealing in the production of leather and leather-based apparel, footwear, etc.
The company is bifurcated into three major divisions: footwear, apparel, and accessories, including bags, belts, wallets, etc.
The company operates in India and is also a leather goods supplier for various reputed international brands. These brands include Marks and Spencer, Fossil, Accessorize, Esprit, etc.
At its establishment, Crew BOS Products was known as Motherson Unimetex Private limited. At that time, it was started with the purpose of dealing and manufacturing parts for the automotive industry.
However, in 1989, the company started with the production and export of leather and leather-based accessories.
Due to their rising growth in the leather sector, the company decided to expand and change its name to Crew BOS Products in 1992.
Why invest in Crew BOS Products stocks?
As of now, the company’s market capitalization is more than 3.60 crore, giving it a considerable share in the leather sector in India.
However, investors looking to invest in the best leather companies in India might have to pass on Crew BOS Products.
The company has been delisted from both stock exchanges, i.e., the national and Bombay stock exchanges. Also, currently, it is under the status of liquidation.
Oscar Global Limited – Top 10 Leather Shares to Buy
Oscar Global Limited is a public ltd company incorporates in the year 1990. The company is produce and export a wide variety of leather-based products.
The company claims to be one of the best in its segment by meeting and sometimes exceeding the industry standards.
Company offer the products rich in quality and feel simply by a touch. The company has a production capacity of more than 45000 units per annum.
Presently, the company operates globally in countries including the U.S., Japan, Germany, France, etc.
The company also observes the status of an Export House provided by the Ministry of Commerce under the Government of India.
The company offers the following products:
- Leather Garments
- Leather Jackets
- The Leather Pants
- Leather Bags
- The Leather Belts etc
Why invest in Oscar Global Limited stocks?
The company’s market capitalization is over 2.60 crore and holds a decent spot among the mid-cap investment stocks in the list of top 10 leather shares to buy in India.
If you are an investor who prefers investing in mid-cap stocks, you can consider Oscar Global Limited. The company has provided a return of more than 158% in 2021 and gave its investors more than decent profits.
The earnings per share ratio have not been good, though. The company has an EPS of -3.20 due to the fall in business in the year 2020-21 due to the pandemic.
However, in the long run, investors can stick to the stock.
Welterman International – Leather Sector Stocks to Buy
Welterman International has a relatively small market capitalization of nearly 1.90 crore, making it a small-cap company in the leather industry.
It incorporates in the year 1992 in the state of Ahmedabad. The company deals in footwear products and supplies the raw material, primarily the sole for shoes.
Since the sole is an integral part of a leather shoe, the company has a significant role. The company manufactures more than 18 lakh pairs of leather soles every year.
Welterman International also has a tie-up with an Italian brand and supplies leather soles.
Welterman International considers as an excellent Leather Sector Stocks to buy for people looking to invest in small-cap companies.
The company’s market capitalization is quite good compare to other small-cap companies in the sector. Moreover, the company has given returns of over 80% in the year 2021.
Therefore, Welterman International has the potential for growth in the long run.
KRM International – Leather Companies Stocks to Buy
KRM International is another small-cap company in the leather companies in India with a relatively small market capitalization of nearly 0.8 crores. The company sets up in 1988 as a private limited company.
The company’s primary business revolved around manufacturing and exporting leather-made shoes and leather garments, etc. Apart from leather-made garments, the company also dealt in the export of hosiery garments.
Within four years of its establishment, the company demonstrated tremendous growth and generated a revenue of 20 crores in 1992. Later that year, the company went public to raise funds.
Even though KRM International looks like an ideal pick among leather companies stocks to buy, investment in it would not be possible at the moment.
This is because the company not list on the stock exchanges. The last trade price of KRM International records in the year 2007.
Pretto Leather Industries Limited – Leather Product Companies Shares to Buy
Pretto Leather Industries Limited incorporates in 1992 as a private limited company in the state of Haryana. A few years later, the company set up its unit to manufacture and export various leather-related goods.
Some of these include leather shoes, leather garments, and other accessories.
In 1995, the company went public with its first issue, which was oversubscribed by more than five times making it a top choice as a leather product companies shares to buy.
However, the company delists from the exchanges nearly two decades later. The market capitalization of the stock is nearly 0.2 crores.
Though, the last trade price of the share was 0.33, which records in the year 2015. Since then, there has been no activity in the stock. Therefore, for retail investors, investment into the stock is not possible.
How to Find Good Leather Stocks for Trading?
Trading and investment in stocks involve an element of risk. Therefore, trading without knowing the markets can lead to huge losses.
In this part of the blog, we will talk about some pointers that will help you trade in leather stocks.
Checking the financial leverage: A good company must have lower debt when compared to its current assets. A lower Debt to Current Asset ratio represents the company’s ability to pay off the debts. An ideal Debt to Current Asset ratio shall be lower than 1.10.
Price to Earnings (P/E) Ratio: An ideal company shall have a lower Price to Earnings ratio. A lower ratio signifies a fair valuation of the company and its scope for growth in the future.
Earnings per Share (EPS) Ratio: EPS represents the company’s overall profit divided by the company’s outstanding shares. A company with an EPS of more than 80 is suitable for investment.
How to Invest in the Leather Sector Stocks?
In this part of the blog, we will talk about the process you need to follow to invest in leather stocks in India.
Open a Demat Account: The first thing that you need to do is open a Demat account with the broker of your choice. A Demat account allows you to hold your shares in a Dematerialized format.
In the present scenario, all brokers provide a combination of Demat and Trading accounts that help you trade stocks.
Install the application provided by the broker: Once you have opened an account with a broker, you need to install an application to trade the stocks. Alternatively, you also can use the broker’s website for trading.
Thoroughly research the companies before investing: Before trading and investing in leather companies, it is important to pick the right stock. For doing that, you can take the help of the ratios mentioned above, etc.
Add funds and Start Trading: Once you have made the list of companies you want to trade or invest in, it is time to add funds. After doing this, you can start building your portfolio by buying shares of different companies.
Top Leather Companies in India – Conclusion
The above blog helped us understand the history and size of the leather market in the country. We also looked at some of the best companies for investment. However, investment in the stock market carries considerable risk.
Therefore, it is crucial to keep the pointers mentioned above in mind while picking a stock for investment. Leather is an industry that has been a part of the economy for a long time and has enormous growth potential.
Therefore, investment in the top leather companies in India can prove to be a good decision in the long term.
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