"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.
Sharekhan's research report on Bata India
Bata India (Bata) posted a strong recovery in Q2FY2022 with business recovering to 95% of pre-COVID levels. Revenues stood at Rs. 614 crore (grew by 67% y-o-y), while strong cost-saving initiatives aided a strong improvement in OPM to 19.4%. Bata continued its retail expansion drive by opening more than 30 stores through franchisee route taking overall tally to over 270 stores. The company enhanced its portfolio in casual footwear across categories led by Floatz and a renewed range of North Star footwear. Post easing of lockdown, Bata saw growth in footfalls in its stores. Improved mobility in the coming quarter augurs well for a faster recovery.
Outlook
We maintain Buy with a revised PT of Rs. 2,370. The stock is currently trading at 55.8x/47.9x its FY2023E/24E EPS and 24.3x/20.8x its FY2023E/24E EV/EBIDTA.
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