Sharekhan's research report on Bata India
Bata India Limited’s (Bata’s) Q4FY2023 numbers beat ours as well as the street’s expectation with revenue growth coming better than expectation at 17% to Rs. 778.6 crore; EBIDTA margins came at 23.4%; PAT at Rs. 65.6 crore beat ours as well as street expectation of Rs. 54-57 crore. Casualisation is gaining strong traction with Sneakers category growing 1.6x y-o-y, while Floatz achieved highest ever quarterly turnover after the launch. Premiumsation aided Average Selling Price (ASP) to grow by ~13% y-o-y. Revenues to grow in double digits in the near term with drivers in place. Increased contribution from premium products, change in channel mix and cost efficiencies will help margins to improve in the coming years.
Outlook
The stock is currently trading at 43.1x and 33.8x its FY2024E and FY2025E earnings, respectively. Considering long-term growth prospects with premiumisation in focus, we maintain our Buy rating on the stock with an unchanged PT of Rs. 1,775.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.