Despite muted demand, Bata India is seeing early traction in value segment (sub Rs 1,000). Strategic inventory cleanup, curated product refreshes, and franchiseled expansion are positioning the company for improved efficiency and gradual margin recovery, though near-term pressures persist.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Over the last couple of years, following the change in management, a renewed focus on growth has been evident, characterized by a brand refresh, the introduction of new product lines (such as Sneakers), and enhancements in the backend supply chain infrastructure.
Despite muted demand, Bata India Ltd. is seeing early traction in value segment (sub Rs 1,000). Strategic inventory cleanup, curated product refreshes, and franchiseled expansion are positioning the company for improved efficiency and gradual margin recovery, though near-term pressures persist.
Our FY26-27 estimates are broadly unchanged. We expect FY25-27 CAGR of 8%/12%/22% in revenue/Ebitda/Adjustd PAT CAGR (albeit on a low base in FY25, - 23% vs FY23 levels).
We maintain a Neutral rating with a target price of Rs 1,200.
Sustained volume recovery remains the key trigger for the stock.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
