Small-cap penny stock: AKI India Limited shares hit a high on Saturday, February 1, driven by the Union Finance Minister Nirmala Sitharaman’s announcement of the Focus Product Scheme for the footwear and leather industry.

Budget 2025: Significant Boost for Footwear and Leather Sector

The Budget 2025 outlined ambitious goals for the footwear and leather sector, including the creation of 22 lakh jobs, generating ₹4 lakh crore in turnover, and boosting exports to over ₹1.1 lakh crore.

Government Scheme Details

According to Finance Minister Nirmala Sitharaman, the Focus Product Scheme aims to increase design capacity, support component manufacturing, and supply machinery for non-leather quality footwear while aiding the leather footwear and product market.

“The scheme is expected to facilitate employment for 22 lakh persons, generate turnover of ₹4 lakh crore and exports of over ₹1.1 lakh crore.”

Market Response to the Scheme

The market responded positively, with AKI India Limited’s shares surging to an intraday high of ₹10.52, breaching the upper circuit of 5 per cent on the BSE.

The shares reached their 52-week high of ₹29.90 on February 20, 2024, while touching a 52-week low of ₹9.31 on January 30, 2025. As of February 1 market close, the company’s market capitalization stood at ₹93.14 crore.

Investor Returns and Short-Term Performance

Over the past five years, AKI India shares have delivered nearly 495 per cent returns to investors. However, in the last one year, the shares have seen a decline of 62.73 per cent, and they were down 16.71 per cent year-to-date.

Market Analysis

The surge in AKI India Limited’s shares is a direct result of the government’s strategic initiatives aimed at reviving and strengthening the footwear and leather industries. Such policies often draw significant attention from investors looking for growth opportunities in specific sectors.

While the Focus Product Scheme holds significant promise, it’s important for investors to conduct thorough research and consult with financial experts before making investment decisions.

Conclusion

The announcement of the Focus Product Scheme represents a positive step forward for the footwear and leather sector, expected to drive growth and employment. AKI India Limited’s share price surge indicates market optimism about these developments.

Investors should consider both the long-term benefits and the current market volatility before investing in small-cap stocks like AKI India Limited.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Archynetys. We advise investors to check with certified experts before making any investment decisions.

We invite you to share your thoughts on this development and any related insights you might have. Join the conversation below or connect with us on social media to stay updated on the latest market news and trends.

Join the Discussion:

Comment | Share on Twitter | Share on Facebook