AgenciesICICI Securities has reduce call on with a target price of Rs 1400. The current market price of Bata India Ltd. is Rs 1647.5. Time period given by analyst is one year when Bata India price can reach defined target.
Bata India Ltd., incorporated in the year 1931, is a Large Cap company (having a market cap of Rs 21124.14 Crore) operating in Leather sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 628.84 Crore, up 64.48 % from last quarter Total Income of Rs 382.32 Crore and down -25.83 % from last year same quarter Total Income of Rs 847.84 Crore. Company reported net profit after tax of Rs 26.42 Crore in latest quarter.
Investment Rationale
Weak performance continued in 4Q (revenue declined 5%; 2-year CAGR decline of 7%). Portfolio-specific headwinds (higher formal and fashion salience) continued to hurt; some of the peers have already seen good recovery. The brokerage notes several initiatives by Bata to accelerate recovery – (1) ramping up sales from new channels (ChatShop, Home Delivery, Store on Wheels), (2) capturing semi-urban / rural demand through franchisee stores, and (3) restarting promotional campaigns and new launches. That said, Bata is likely to be a key beneficiary of ‘full unlocking’. Inferior product mix (away from formals & fashion and more towards open style footwear), is likely to put further pressure on profitability till then.
Promoter/FII Holdings
Promoters held 53 per cent stake in the company as of March 31, 2021, while FIIs held 5.3 per cent, DIIs 26 per cent and public and other 15.7 per cent.
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
Bata India Ltd., incorporated in the year 1931, is a Large Cap company (having a market cap of Rs 21124.14 Crore) operating in Leather sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 628.84 Crore, up 64.48 % from last quarter Total Income of Rs 382.32 Crore and down -25.83 % from last year same quarter Total Income of Rs 847.84 Crore. Company reported net profit after tax of Rs 26.42 Crore in latest quarter.
Investment Rationale
Weak performance continued in 4Q (revenue declined 5%; 2-year CAGR decline of 7%). Portfolio-specific headwinds (higher formal and fashion salience) continued to hurt; some of the peers have already seen good recovery. The brokerage notes several initiatives by Bata to accelerate recovery – (1) ramping up sales from new channels (ChatShop, Home Delivery, Store on Wheels), (2) capturing semi-urban / rural demand through franchisee stores, and (3) restarting promotional campaigns and new launches. That said, Bata is likely to be a key beneficiary of ‘full unlocking’. Inferior product mix (away from formals & fashion and more towards open style footwear), is likely to put further pressure on profitability till then.
Promoter/FII Holdings
Promoters held 53 per cent stake in the company as of March 31, 2021, while FIIs held 5.3 per cent, DIIs 26 per cent and public and other 15.7 per cent.
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
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