1. At a Glance – The Shoe That Almost Fits
Market cap ₹172 crore.
Current price ₹155.
Book value ₹418.
Price-to-book? A humble 0.37x.
Stock P/E? 28.1.
ROCE? 3.90%.
ROE? 1.19%.
Ladies and gentlemen, welcome to Superhouse Ltd, a leather exporter trading at less than half its book value but delivering returns that look like they’re still stuck in the warehouse.
Latest Q3 FY26 numbers (quarter ended December 2025) show:
- Sales: ₹169.09 Cr
- PAT: ₹1.28 Cr
- OPM: 5.62%
- EPS: ₹1.16
Quarterly profit jumped 151% QoQ. Sounds exciting, right? But when your base was low, even mild improvement feels like Diwali.
Exports contribute ~77% of revenue (FY23), meaning this company is heavily tied to global demand for leather footwear and PPE. And with 78+ countries in its export basket, Superhouse is basically India’s travelling shoe salesman.
But here’s the catch:
Debt is ₹189 Cr.
Interest coverage is just 1.34.
Cash conversion cycle? 307 days in FY25.
That’s almost a year to convert leather into cash.
Is this a turnaround brewing? Or just another slow-moving leather trunk?
Let’s lace up and investigate.
2. Introduction – The Leather Story That Got Wrinkled
Superhouse Ltd has been around since 1980. That’s 45 years of tanning leather, making shoes, exporting riding gear, and trying to keep margins alive.
It operates across:
- Finished leather
- Fashion footwear
- Safety footwear
- PPE
- Leather accessories
- Riding products
- Garments
- Even socks
Basically, if it’s wearable and remotely leather-ish, they probably make it.
Now here’s what makes it interesting.
They sell under brands like Allen Cooper and Double Duty.
They export to 78+ countries.
They have subsidiaries in UK, US, Middle East, Spain, Germany, France.
On paper? Global footprint.
In numbers? ROE of 1.19%.
Over the last 5 years:
- Sales growth CAGR: 1.79%
- Profit CAGR: -27%
- 3-year profit growth: -47%
The leather industry has been volatile. Raw material costs, export pressure, global slowdown — everything has hit margins.
But here’s the twist.
They trade at 0.37x book value.
So the market is saying:
“Nice assets, bro. But where’s the juice?”
The real question is — are we looking at a deep value situation… or deep inventory?
Let’s open the factory gates.
3. Business Model – WTF Do They Even Do?
Imagine a vertically integrated leather ecosystem.
Step 1: Tan the leather.
Step 2: Make footwear.
Step 3: Make safety shoes.
Step 4: Add PPE gear.
Step 5: Export it worldwide.
Superhouse operates:
- 3 Tanneries – 2.5 million sq. ft. monthly leather capacity
- 3 fashion footwear factories – 10,000 pairs/day
- 6 Desma machines – 6,000 pairs/day PPE
- Non-leather shoes – 60,000 pairs/month
- Accessories: belts, bags, wallets
They cater to:
- Fashion footwear
- Industrial safety
- Riding products
- Textile garments
Revenue split FY23:
- Leather & leather products – 85%
- Textile products – 11%
- Other – 4%
