Bata India Q3 Result Review: Centrum Downgrades Both Rating, Target Price — Here's Why

Bata is banking on Omni-channel (6% sales contribution) strategy with 1953 stores covering 1500+ towns. Gross margins increased by 13bps to 56.2% whereas Ebitda Margin settled at 21.7% (+152bps)..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..Centrum Broking Report.Bata India Ltd.’s Q3 FY25 print was below our estimates; revenue /Ebitda/profit after tax grew by 1.7%/9.4%/ 19.8% YoY. Management observed rebound in volume growth led by power and Floatz. Volume growth was driven by-value proposition and End of season sale. Further, lowest inventory led by EOSS helped to reduce complexity in the store. Management has been working on Zero based Merchandising (17 stores) which would help to improve performance led by lower complexity (lower inventory and only three price points at Rs 999/1,299/1,499) and to target top 100 stores (~50% sales contribution) by FY26. Sneaker Studio is now implemented in 756 stores. Bata is banking on Omni-channel (6% sales contribution) strategy with 1953 stores covering 1500+ towns. Gross margins increased by 13bps to 56.2% whereas Ebitda Margin settled at 21.7% (+152bps). Going forward, management wants to continue 150-160 net store opening for next couple of years. With lower Q3 FY25, we cut our earnings and change rating from Reduce to Sell with target price of Rs 1,174 (45 times FY27E earnings per share)..Click on the attachment to read the full report:.Bata India Q3 Results: Marginal Rise In Net Profit To Rs 59 Crore.DISCLAIMERThis 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.

Bata India Q3 Result Review: Centrum Downgrades Both Rating, Target Price — Here's Why

With lower Q3 FY25, the brokerage cut earnings and change rating from Reduce to Sell with target price of Rs 1,174 (45 times FY27E earnings per share).

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Bata India Q3 Result Review: Centrum Downgrades Both Rating, Target Price — Here's Why

With lower Q3 FY25, the brokerage cut earnings and change rating from Reduce to Sell with target price of Rs 1,174 (45 times FY27E earnings per share).

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