Finace And Stock

Buy Bata India, target price Rs 2120: ICICI Direct

ICICI Direct has buy call on with a target price of Rs 2120. The current market price of Bata India Ltd. is Rs 1827.05.

Time period given by analyst is one year when Bata India Ltd. price can reach defined target.

Bata India Ltd., incorporated in the year 1931, is a Large Cap company (having a market cap of Rs 23525.68 Crore) operating in Leather sector.

Bata India Ltd. key Products/Revenue Segments include Footwear and Other Operating Revenue for the year ending 31-Mar-2021.

For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 279.25 Crore, down -53.79 % from last quarter Total Income of Rs 604.29 Crore and up 49.24 % from last year same quarter Total Income of Rs 187.12 Crore. Company reported net profit after tax of Rs -69.48 Crore in latest quarter.

Investment Rationale
Bata has, over the last one year, delivered ~33% return whereas Relaxo delivered 77% returns owing to increased market share due to enhanced consumer preference towards open footwear. Strategies like cost reduction, focus on omni channel and calibrated expansion of retail network through asset light franchisee route can be structurally positive for Bata’s business. Strong revenue growth coupled with recovery in margin profile would enable Bata to reduce the valuation gap with Relaxo.

Promoter/FII Holdings
Promoters held 53 per cent stake in the company as of June 30, 2021, while FIIs held 5.2 per cent, DIIs 27.3 per cent and public and others 14.5 per cent.

(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.

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